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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 Snack Machines Machines Investment $76,000 $70,000 Useful life (years) Estimated annual net cash inflows for useful life $10.000 $14,000 Residual value $5,000 Depreciation method Straight-line Straight-line Required rate of retum 8% 14% What is the present value of all future cash inflows from the snack machines and residual value? $10,000 OA. $79,240 OB. 59,240 OC. 589,000 OD. $80,280 Assuming an interest rate of 12%, if you invest a lump sum of $8,000 now, the balance of your investment in 6 years will be closest to (Click the icon to view the future value of $1 tapi (Click the icon to view the future value of annu Data Table O A. $15,792 O B. $48,000 OC. $4,056 OD. $32,888 Future Value of Annuity of $1 Periods 8% 5 5 .867 6 7336 7 8 .923 8 10.637 12 488 10 14.487 10% 6.105 7.716 9 487 11.436 13.579 15 937 12% 6.353 8 115 10.089 12.300 14.776 17549 14% 6.610 8.536 10730 13.233 16 085 1 9337 Print Done Future Value of $1 Periods 1 1.469 1587 1.714 1.851 1999 2.159 10% 1611 1.772 1949 2144 2358 12% 1.762 1974 2211 2.476 2.773 3.106 149 1925 2 195 2.502 2853 3252 3.707 Click to select your answer. 2594

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