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 a 14-year period, and each has a required investment of $5,140. The firm uses a 6.21% 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 (CF0) $5,140 $5,140 Annual cash inflows (CF) Outcome $550 $430 Pessimistic Most likely 710 710 1,010 Optimistic 1,240 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.) (Round to the nearest The range of annual cash inflows for the snack foods machine is $ 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.) 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.) result. The (2). machine has both a Each vending machine has the same (1). greater potential loss and a greater potential return. Therefore, the decision will depend on the risk disposition of management (1) (2) pessimistic soft drink most likely snack foods optimistic