(Present value tables are needed.)Family Fun Park is evaluating the purchase of a new game to be located on its Midway. Family Fun has narrowed their choices down to two: the Wacky Water Race game and the Whack-A-Mole game. Financial data about the two choices follows. What is the total present value of future cash inflows from the Whack-A-Mole game?

Question

(Present value tables are needed.)Family Fun Park is evaluating the purchase of a new game to be located on its Midway. Family Fun has narrowed their choices down to two: the Wacky Water Race game and the Whack-A-Mole game. Financial data about the two choices follows.  What is the total present value of future cash inflows from the Whack-A-Mole game?

Quizplus · Accepted Answer

Using the present value tables and plugging in the given data, we can calculate the total present value of future cash inflows for each option:
- Wacky Water Race: $18,000
- Whack-A-Mole: $23,367

Therefore, the Whack-A-Mole game has a higher total present value of future cash inflows and would be the better choice for Family Fun Park.

(Present Value Tables Are Needed