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5) Peats Coffee is an organic coffee shop that donates a portion of its profits to aid in infrastructure development in third world countries. The
5) Peats Coffee is an organic coffee shop that donates a portion of its profits to aid in infrastructure development in third world countries. The company needs to buy a new coffee machine and has two options:
Year: 0 1 2 3 Machine 1: -$23,000 $11,000 $13,000 $15,000 Year: 0 1 2 3 4 Machine 2: -$31,000 $10,000 $14,000 $18,000 $12,000
Which machine should Peats Coffee buy? Assume a 12% discount rate.
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