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:
What is the total present value of future cash inflows from the soda machines and residual value?
Present Value of $1
Present Value of Annuity of $1
A) $132,000
B) $134,180
C) $93,330
D) $165,330
Correct Answer:
Verified
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