Analyze the two opportunities from the FINANCIAL perspective only. Which opportunity would be best for Humble Pies and why?

The labeling machine option is the best decision as it would increase the profit to 1 million dollars and the ROI to 40% and if the life span of the machine is extended, an increased profit of 200 thousand dollars would be made, but the fast-food chain would be more profitable in the long run if the contract is extended.

Explanation:

The Humble Pies is a bakery company co-owned by two friends Linda and Taylor. After a while in the business, they had two options to either sign a contract with the fast-food with a 3-year contract to purchase a packaging machinery and a supply of 2,200,000 pies at $1.50 per pie or purchase a labeling machine which would reduce the cost of labor and provide a monthly profit of $13,000.

The former in the long run (if the contract is extended) would be profitable to Humble pies, but the labeling machine option is the best decision of a short-term investment.

answer; hazards;

answer: e

explanation: