1. NPV Net Present Value Keurig K575
Keurig K575 is the model I purchased from Amazon for approximately $150.00. I purchased this product to save time during the week and also save money from purchasing a $2 cup of coffee every day of the week. My daily cost of coffee was approximately $2 per day and totaling $80 per month. The Keurig cups costs $18 for 30 cups, which means the initial investment to get started would be approximately $168. Within one quarter, this machine would pay for itself if one is a habitual coffee drinker like myself. Over one year and a total of 240 cups of coffee, one would save approximately $330. This concludes that Keurig would be a good investment for daily coffee drinker.
Ross, S., Westerfield, R., & Jordan, B. (2007) Chapter 8: Net present value and other investment criteria. Essentials of Corporate Finance. McGraw Hill. http://novellaqalive2.mheducation.com/sites/dl/free/007000000x/484691/Part5_Chap8.pdf