(Present value tables re needed) The Marties 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. Following is the relevant financial data relating to the decision:
Soda Machine Snack Machine
Investment $75,000 $50,000
Useful life (years) 5 10
Estimated annual net cash inflows $30,000 $18,000
for useful life
Residual value $30,000 $10,000
Dereciation method straight-line Straight-line
Required rate of return 8% 12%
What is the net present value for the soda machines?
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