Refer to Red Owl in S12-13. What is the approximate internal rate of return (IRR) of the

Question:

Refer to Red Owl in S12-13. What is the approximate (IRR) of the kiosk investment?
Refer to S12-13
The local Red Owl supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $47,000 and have no residual value. Management expects the equipment to result in net cash savings over three years as customers grow accustomed to using the new technology: $17,000 the first year; $22,000 the second year; $24,000 the third year. Assuming a 14% discount rate, what is the NPV of the kiosk investment? Is this a favorable investment? Why or why not?
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...