Hangry 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:

	Soda Machines	Snack Machines
Investment	$80,000	$70,000
Useful life (years)	5	10
Estimated annual net cash inflows for useful life	$40,000	$24,000
Residual value	$10,000	$6,000
Depreciation method	Straightline	Straightline
Required rate of return	8%	14%

What is the present value of all future cash inflows from the snack machines and residual value?

Present Value of $1

Periods	6%	8%	10%	12%	14%
4	0.792	0.735	0.683	0.636	0.592
5	0.747	0.681	0.621	0.567	0.519
6	0.705	0.630	0.564	0.507	0.456
8	0.627	0.540	0.467	0.404	0.351
10	0.558	0.463	0.386	0.322	0.270
12	0.497	0.397	0.319	0.257	0.208

Present Value of Annuity of $1

Periods	6%	8%	10%	12%	14%
4	3.465	3.312	3.170	3.037	2.914
5	4.212	3.993	3.791	3.605	3.433
6	4.917	4.623	4.355	4.111	3.889
8	6.210	5.747	5.335	4.968	4.639
10	7.360	6.710	6.145	5.650	5.216
12	8.384	7.536	6.814	6.194	5.660

A.

$100,000

B.

$55,184

C.

$126,804

D.

$125,184