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 Snack Machines Investment Useful life (years) $75,000 5 $35,000 10 Estimated annual net cash inflows for useful life $20,000 Residual value Depreciation method $50,000 Straight-line $24,000 $13,000 Required rate of return 10% Straight-line 10% What is the total present value of future cash inflows from the soda machines and residual value? 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 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 $31,870 $145,000 $152,498 $106,870