(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 net present value of the Wacky Water Race 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 net present value of the Wacky Water Race game?

Quizplus · Accepted Answer

C)
Cash flow $8,000 × (PVA 5yr @ 8% )3.993 = 31,944
Residual 2,000 × (PV 5 yr @ 8% ).681 = 1,362
Total 33,306
Cost -32,000
NPV 1,306

(Present Value Tables Are Needed