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Question 54 2 pts (Present value tables are needed.) The Janus Vending Machine Company is looking to expand its business by adding a new line
Question 54 2 pts (Present value tables are needed.) The Janus 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 Snack Machines Machines $75,000 Investment Useful life vears) Estimated annual net cash inflows for useful life Residual value Depreciation me thod Required rate of return $50,000 10 $18,000 $10,000 straight-line straight-line 12% $30,000 $30,000 8% What is the net present value for the snack machines? $(65,220) $104,920 $54,920 $86,920
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