QUESTIO 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: Soda Machines Snack Machines Investment $75,000 $45,000 Useful life (years) 5 8 Estimated annual net cash inflows for useful life $30,000 $20,000 Residual value $20,000 $17,000 Depreciation method Straight-line Straight-line Required rate of return 8% 10% What is the net present value for the soda machines? 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 7 0.665 0.583 0.513 0.452 0.400 8 0.627 0.540 0.467 0.404 0.351 9 0.592 0.500 0.424 0.361 0.308 10 0.558 0.463 0.386 0.322 0.270 11 0.527 0.429 0.350 0.287 0.237 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 7 5.582 5,206 4.868 4.564 4.288 8 6.210 5.747 5.335 4.968 4.639 9 6.802 6.247 5.759 5,328 4.946 10 7.360 6.710 6.145 5.650 5.216 11 7.887 7.139 6.495 5.938 5.553 12 8.384 7.536 6,814 6.194 5.660 -$133,410 $125,000 $58,410 $31,170 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 62 Q L T W X 0