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I've done this quite a few times, and the "decay curve" from a handful
of M&M's works out beautifully. The only hitch is when students have
a few M&M's left over that have no writing on either side. This is
when I introduce the concept of "background subtraction."
M&M's are slightly cheaper to purchase than pennies, and they are
preferred when you are asking the students to eat their apparatus.
However, if you consider that you can use pennies year after year, use
them in numerous other experiments (measurement, density, voltaic pile,
etc.), and that you can recover 100% of their initial cost when you recycle
(by spending) the used pennies, you can't beat the price of pennies.