Yummy Dessert Company is looking into the below additional products for its menu to expand sales. The company will have training costs when the machine(s) are installed. The company expects all machines to have a useful life of 5 years at which time it will dispose of the machine and purchase a new one if the product is successful. The machines, costs, and expected contribution margin are detailed below:

What is the net present value of the ice cream machine (round to 2 decimal places, ex. 9.99)?

What is the net present value of the popcorn machine (round to 2 decimal places, ex. 9.99)?

What is the net present value of the espresso machine (round to 2 decimal places, ex. 9.99)?

What is the profitability index of the ice cream machine (round to 4 decimal places, ex. 0.3333)?

What is the profitability index of the popcorn machine (round to 4 decimal places, ex. 0.3333)?

What is the profitability index of the espresso machine (round to 4 decimal places, ex. 0.3333)?

What is the internal rate of return of the ice cream machine (round to 4 decimal places, ex. 0.3333)?

What is the internal rate of return of the popcorn machine (round to 4 decimal places, ex. 0.3333)?

What is the internal rate of return of the espresso machine (round to 4 decimal places, ex. 0.3333)?

What is the payback period of the ice cream machine (round to 2 decimal places, ex. 9.99)?

What is the payback period of the popcorn machine (round to 2 decimal places, ex. 9.99)?

What is the payback period of the espresso machine (round to 2 decimal places, ex. 9.99)?

If the company wants to maximize its return on investment, which machine should it choose?

○ Ice Cream Machine

○ Popcorn Machine

○ Espresso Machine

If the company only has room for one machine on the counter, which machine should it choose?

○ Ice Cream Machine

○ Popcorn Machine

○ Espresso Machine

If the company has unlimited funds, which machine(s) should it choose?

○ Ice Cream Machine

○ Popcorn Machine

○ Espresso Machine

If the company only has $10,000 to spend (on the machine and training) which machine(s) should it choose?

○ Ice Cream Machine

○ Popcorn Machine

○ Espresso Machine