Simms Manufacturing Is Considering Two Alternative Investment Proposals with the Following

Simms Manufacturing is considering two alternative investment proposals with the following data:
$$\begin{array} { | l | l | l | } \hline & \text { Proposal X } & \text { Proposal Y } \\\hline \text { Investment } & \$ 620,000 & \$ 400,000 \\\hline \text { Useful life } & 8 \text { years } & 8 \text { years } \\\hline \begin{array} { l } \text { Estimated annual net } \\\text { cash inflows for 8 years }\end{array} & \$ 130,000 & \$ 80,000 \\\hline \text { Residual value } & & \\\hline \text { Depreciation method } & \$ 60,000 & \$ 0 \\\hline \text { Required rate of return } & \text { Straight-line } & \text { Straight-line } \\\hline\end{array}$$ Note: Present value and future value tables are needed.
Using the net present value model, which alternative should Simms select, and why?

A) Proposal Y, because its net present value is $22,670 higher than the net present value of Proposal X.
B) Proposal Y, because it is the only alternative with a positive net present value.
C) Proposal X, because it is the only alternative with a positive net present value.
D) Both proposals are equivalent when using the net present value model.