Refer to the data for High Country Department Stores' computerized checkout equipment decision given in Exhibit 16-11.

Question:

Refer to the data for High Country Department Stores' computerized checkout equipment decision given in Exhibit 16-11. Also refer to the net-present-value analysis presented in Exhibit 16-12.
Required:
The annual incremental sales revenue resulting from the marketing analysis is estimated at $40,000. How low could this amount be and still result in a nonnegative for the new equipment?
Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...