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:
Using the net present value model, which alternative should Pantry Vending Machine Company select?
Present Value of $1
Present Value of Annuity of $1
A) The snack machines should be selected.
B) The soda machines should be selected.
C) Both investments should be selected.
D) Neither investment should be selected.
Correct Answer:
Verified
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