Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P11-21 (similar to) Question Help Scenario analysis Kiosk Corp. produces vending machines and places them in public buildings. The company has obtained permission to place

image text in transcribed
image text in transcribed
image text in transcribed
P11-21 (similar to) Question Help 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 14 year puriod. and each has a required investment of $5,240. The firm usos a 0.37% cost of capital Management has constructed the following table of estimates of annual cash inllows for pessimisti, most likely, and optimistic results. (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet) a. The range of annual cash intows for the soft drink machine is $Round to the newest doltar) P11-21 (similar to) Optimistic 980 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 $(Round to the nearest dollar) - Protected View AutoSave ON data-11_22_2020-4_02 PM TO Home Formulas Review Page Layout File Insert Data View PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need A1 D E 1 2 Initial investment 3 Outcome 4 Pessimistic 5 Most likely 6 Optimistic 7 B C Soft drinks Snack foods 5240 5240 Annual cash inflows (CF) 470 430 740 740 980 1190 000 a 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers Acquisitions And Other Restructuring Activities

Authors: Donald DePamphilis

9th Edition

0128016094, 978-0128016091

More Books

Students also viewed these Finance questions