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The Pantry Vending Machine Company is looking to expand its business by adding a new line of vending machines. The management team is considering expanding

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The Pantry 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 Soda Machines Machines Investment 580,000 $55,000 Useful life (years) Estimated annual net cash inflows for useful le $20,000 S19.000 Residual value $10,000 $16.000 Depreciation method Straight-line Straight-line Present Value of Annuity of $11 Required rate of retum 6% 10% 10% 12% 3.170 3037 2914 What is the present value of all future cash inflows from the snack machines and residual value? 3990 3.791 3 605 3.433 (Click the icon to view the present value of $1 table) 4623 4 355 4.111 3589 5.747 5335 4.968 46.19 O A. $134,570 5 710 6.145 5550 5216 6.194 5660 B. $129.466 OC. 590,000 D. $74.466 Data Table Present Value of $1 10% 14% 6% 0.792 0.747 0.705 0627 0.558 0.497 12% 0.636 0.567 0507 0.404 0.322 0.521 0.564 0467 0630 0.592 0519 0.456 0.351 0 270 0208 0540

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