Scenario analysis Automated Food Distribution Corp. (AFDC) 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. AFDC expects both machines to provide benefits over a 11-year period, and each has a required investment of $3,050. The firm uses a 10.3% 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 located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Soft drinks Snack foods Initial Investment (CF) $3,050 $3,050 Outcome Annual cash inflows (CF) Pessimistic $460 $440 Most likely 740 740 Optimistic 1.020 1.190 a. Determine the range of annual cash inflows for each of the two vending machines. a. The range of annual cash inflows for the soft drink machine is $ (Round to the nearest dollar.) The range of annual cash inflows for the snack foods machine is $. (Round to the nearest dollar.) b. Complete the NPV table below for the soft drink machine: (Round to the nearest cent.) NPVS Soft drinks $ Outcome Pessimistic Most likely Optimistic Complete the NPV table below for the snack foods machine: (Round to the nearest cent.) Initial investment (CF) Outcome Pessimistic Most likely Optimistic Soft drinks Snack foods $3,050 $3,050 Annual cash inflows (CF) $460 $440 740 740 1,020 1,190 a. Determine the range of annual cash inflows for each of the two vending machines. NPVs Outcome Snack foods Pessimistic $ Most likely Optimistic 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.) (Select from the drop-down menus.) Each vending machine has the same result. The machine has both a greater potential loss and a greater potential return. Therefore, the decision will depend on the risk disposition of management. Enter any number in the edit fields and then continue to the next