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snack machines. Following is the relevant financial data relating to the decision: Investment Useful life (years) Estimated annual net cash inflows for useful life Residual
snack machines. Following is the relevant financial data relating to the decision: Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return Soda Machines $72,000 6 $30,000 $50,000 Straight-line 6% Snack Machines $60,000 8 $13,000 $17,000 Straight-line 12% What is the present value of all future cash inflows from the snack machines and residual value? (Click the icon to view the present value of $1 table.) A. $71,452 B. $64,584 C. $4,584 D. $90,000 Music Data table 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 8 0.627 0.540 0.467 0.404 0.351 10 0.558 0.463 0.386 0.322 0.270 12 0.497 0.397 0.319 0.257 0.208 Data table 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 8 6.210 5.747 5.335 4.968 4.639 10 7.360 6.710 6.145 5.650 5.216 12 8.384 7.536 6.814 6.194 5.660
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