8. Scenario analysis Kiosk Corp. produces vending machines and places them in public buildings. The company has obtained permission to place one of its machine in a local library. The company makes two types of machines. One distributes soft drinks, and the other distributes snack foods. Kiosk expects both machines to provide benefits over a 12-year period, and each has a required investment of $5,120. The firm uses a 6.49% cost of capital. Management has constructed the following table of estimates of annual cash inflows for pessimistic, most likely, and optimistic results. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CFO) Outcome Pessimistic Most likely Optimistic Soft drinks Snack foods $5,120 $5,120 Annual cash inflows (CF) $540 $420 730 1,020 730 1,190 a. Determine the range of annual cash inflows for each of the two vending machines. b. Construct a table of the NPVs associated with each outcome for both machines. c. Find the range of NPVs, and subjectively compare the risks associated with these machines. a. The range of annual cash inflows for the soft drink machine is $ The range of annual cash inflows for the snack foods machine is $ (Round to the nearest dollar.) (Round to the nearest dollar.) b. Complete the NPV table below for the soft drink machine: (Round to the nearest cent.) Outcome Pessimistic Most likely Optimistic NPVs Soft drinks $ Complete the NPV table below for the snack foods machine: (Round to the nearest cent.) Outcome Pessimistic Most likely Optimistic NPVs Snack foods $ c. The range of NPVs for the soft drink machine is $ (Round to the nearest cent.) The range of NPVs for the snack foods machine is $ (Round to the nearest cent.) Bead art no ser & jong machine has both a greater potential loss and a (Select from the drop-down menus.) Each vending machine has the same (1). result. The (2) greater potential return. Therefore, the decision will depend on the risk disposition of management. (1) pessimistic (2) snack foods O most likely soft drink optimistic