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

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The Primera Casa 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 $72,000 Snack Machines $65,000 12 Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return $10,000 $24,000 $10,000 $7000 Straight-line Straight-line 8% 14% What is the present value of all future cash inflows from the snack machines and residual value? $96,000 $70,840 $137.296 $135,840

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