(Present Value Tables Are Needed

question 109

Multiple Choice

(Present value tables are needed. ) The Janus 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 net present value for the snack machines?

• A)$(65,220)
• B)$104,920
• C)$54,920
• D)$86,920

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and commerce, driving innovation and efficiency.

Production

The process of creating, expanding, manufacturing, or improving goods and services.

Isocost Line

Represents all combinations of inputs (like labor and capital) that cost the same amount for a firm, used in the analysis of optimal production decisions.

Slope

A measurement that indicates whether the relationship between variables is positive or negative and how much of a response there is in Y (the variable on the vertical axis) when X (the variable on the horizontal axis) changes.