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ACCT 222 Managerial Accounting Investment Assessment Project (Chapter 24) Black Dog Coffee House is considering the purchase of new coffee equipment that would allow the
ACCT 222 Managerial Accounting Investment Assessment Project (Chapter 24) Black Dog Coffee House is considering the purchase of new coffee equipment that would allow the company to expand its current coffee production capacity. Multiple commercial quality semi-automatic coffee machines have been surveyed by Black Dog. However, only two coffee makers have been selected for further consideration. The chosen appliances are comparable in their utility, durability, and productivity. A. The cost of QYTEC coffee machine is $27,000. It is expected to yield net cash flows of $36,000 per year for the next six years. B. The cost of Sanremo Caf Racer Renegade coffee machine has a price tag of $27,000. It is expected to generate $23,500 per year for the next seven years. Black Dog requires an 8% return on all its investments. Requirements 1. Compute each machine's net present value. Round your answer to the whole number. 2. Compute each machine's profitability index. Round your answer to the nearest hundredth. 3. Based
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