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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

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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 13-year period and each has a required investment of 55.280. The firm us a 6 54% cost of capital Management has constructed the following table of antimaton of annual cooh inflows for pensimistic, most likely, and optimistic results. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) a. The range of annual cash inflows for the soft drink machine is (Round to the nearest dollar Initial investment (CF) Outcome Doccimistic Soft drinks Snack foods $5,280 $5,280 Annual cash inflows (CF) $530 can Outcome Pessimistic Most likely Optimistic Annual cash inflows (CF) $530 $400 740 740 1,020 1,170 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

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