Stellan Manufacturing Is Considering the Following Two Investment Proposals Compute the Present Value of the Future Cash Inflows from
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Stellan Manufacturing is considering the following two investment proposals: $\begin{array}{|l|r|r|} \hline & \text { Proposal X } & \text { Proposal Y } \\\hline \text { Investment } & \$ 738,000 & \$ 508,000 \\\hline \text { Useful life } & 5 \text { years } & 4 \text { years } \\\hline \text { Estimated annual net cash inflows received } & & \\\text { at the end of each year } & \$ 152,000 & \$ 100,000 \\\hline \text { Residual value } & \$ 62,000 & \$ 0 \\\hline \text { Depreciation method } & \text { Straight-line } & \text { Straight-line } \\\hline \text { Annual discount rate } & 10 \% & 9 \%\\\hline \end{array}$ Compute the present value of the future cash inflows from Proposal Y.
Present value of an ordinary annuity of $1:
$$\begin{array} { | c | r | r | r | } \hline & 8 \% & 9 \% & 10 \% \\\hline 1 & 0.926 & 0.917 & 0.909 \\\hline 2 & 1.783 & 1.759 & 1.736 \\\hline 3 & 2.577 & 2.531 & 2.487 \\\hline 4 & 3.312 & 3.240 & 3.170 \\\hline 5 & 3.993 & 3.809 & 3.791 \\\hline 6 & 4.623 & 4.486 & 4.355 \\\hline\end{array}$$

A) $271,018
B) $324,000
C) $294,640
D) $254,000