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(Present Value Tables Are Needed Required:
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(Present value tables are needed.)Golden Corporation is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair.The company has narrowed their choices down to two: the C23 Model and the Q12 Model.Financial data about the two choices follows.
C23Q12 Investment $360,000$165,000 Useful life (years) 88 Estimated annual net cash inflows for useful life $80,000$25,000 Residual value $20,000$12,000 Depreciation method straight-line  straight-line  Required rate of return 14%10%\begin{array}{|l|c|c|c|}\hline&\mathrm{C} 23 & \mathrm{Q} 12 \\\hline \text { Investment } & \$360,000 & \$ 165,000 \\\hline \text { Useful life (years) } & 8 & 8 \\\hline \text { Estimated annual net cash inflows for useful life } & \$ 80,000 & \$ 25,000 \\\hline \text { Residual value } & \$ 20,000 & \$ 12,000 \\\hline \text { Depreciation method } & \text {straight-line } & \text { straight-line } \\\hline \text { Required rate of return } & 14 \% & 10 \% \\\hline\end{array}
Required:
a.Calculate the net present value of the Q12 Model.
b.Calculate the net present value of the C23 Model.
c.Using the net present value method,which alternative should Golden Corporation select?


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