40) 40) The Pantry Vending Machine Company is looking to expand its business by adding a new line of vending machines. The management team is considering expanding into either soda machines or snack machines. Following is the relevant financial data relating to the decision: Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return Soda Machines $78,000 6 $50,000 $30,000 Straight-line 10% Snack Machines $55,000 10 $10,000 $19,000 Straight-line 14% Using the net present value model, which alternative should Pantry Vending Machine Company select? Present Value of $1 13 Periods 4 5 6 7 8 9 10 11 12 6% 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 8% 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 10% 0683 0.621 0.564 0513 0.467 0.424 0386 0.350 0.319 12% 0.636 0.567 0.507 0.452 0.404 0.361 0322 0.287 0.257 14% 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 Present Value of Annuity of 51 Periods 6% 4 3.465 5 4.212 6 4.917 7 5.582 8 6.210 9 6.802 10 7.360 11 7.887 12 8.384 8% 3312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 10% 3.170 3.791 4.355 4868 5.335 5.759 6.145 6.495 6 814 12% 3037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 14% 2914 3.433 3.899 4.288 4.639 4.946 5.216 5.553 5.660 A) The soda machines should be selected C) Neither investment should be selected. B) Both investments should be selected. D) The snack machines should be selected