The Jan 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: (For Soda Machines, the present value for this scenario is 0.681 and the present value of annuity for this scenario is 3.993. For Snack Machines, the present value for this scenario is 0.322 and the present value of annuity for this scenario is 5.650.)

	Soda Machines	Snack Machines
Investment	$75,000	$50,000
Useful life (years)	5	10
Estimated annual net cash inflows for useful life	$30,000	$18,000
Residual value	$30,000	$10,000
Depreciation method	straightminusline	straightminusline
Required rate of return	8%	12%

What is the net present value for the snack machines?

A.

$54,920

B.

$86,920

C.

$(65,220)

D.

$104,920