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The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $45,000 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: $13,000 the first year; $23,000 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? (Click the icon to view the present value of an annuity table.) 3 (Click the icon to view the present value table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the future value table.) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV is $ D . The NPV is and therefore the kiosks favorable investment. Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 18.046 16.351 14.877 | 13.590 12.462 11.470 9.818 8.514 7.469 6.623 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 25.808 22.396 | 19.600 17.292 15.372 | 13.765 11.258 9.427 8.055 7.003 40 | 32.835 | 27.355 | 23.115 | 19.793 | 17.159 | 15.046 11.925 9.779 | 8.244 | 7.105 20% 0.833 1.528 2.106 2.589 2.991 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.929 6.097 6.177 6.233 3.326 3.605 3.837 4.031 4.192 ** HD to w is = o ovo orawn 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Print Print Done Done 0 Reference Periods 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 12% 14% 16% 18% 1.000 1.000 1.000 1.000 2.120 2.140 2.160 2.180 3.374 3.440 3.506 3.572 4.779 4.921 5.066 5.215 6.353 6.610 6.877 7.154 8.115 8.536 8.977 9.442 10.089 10.730 11.414 12.142 12.300 13.233 14.240 15.327 14.776 16.085 17.519 19.086 17.549 19.337 21.321 23.521 20.655 23.045 25.733 28.755 24.133 27.271 30.850 34.931 28.029 32.089 36.786 42.219 32.393 37.581 43.672 50.818 37.280 43.842 51.660 60.965 72.052 91.025 115.380 146.628 133.334 181.871 249.214 342.603 241.333356.787 530.312790.948 767.091 1,342.025 2,360.757 4,163.213 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 186.688 471.981 1,181.882 7,343.858 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 26.870 36.459 47.575 75.401 | Print Done Reference Periods voor 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.6450.592 0.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.481 0.417 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 12% 14% 16% 0.893 0.877 0.862 0.797 0.769 0.743 0.712 0.675 0.641 0.636 0.592 0.552 0.567 0.519 0.476 0.507 0.456 0.410 0.452 0.400 0.354 0.404 0.351 0.305 0.361 0.308 0.263 0.322 0.270 0.227 0.287 0.237 0.195 0.257 0.208 0.168 0.229 0.182 0.145 0.205 0.160 0.125 0.183 0.140 0.108 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.0200.012 0.0110.005 0.003 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 0.263 30 40 Print Done Reference Future Value of $1 Periods 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 12% 1.120 1.254 1.405 1.574 1.762 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 1.340 1.587 = ovo AWN- 1.974 1.062 1.072 1.083 1.094 1.105 1.116 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 1.423 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.419 1.504 1.594 1.689 1.791 1.407 1.477 1.551 1.629 1.710 1.127 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 1.796 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 18% 20% 1.180 1.200 1.392 1.440 1.643 1.728 1.939 2.074 2.288 2.488 2.700 2.986 3.185 3.583 3.759 4.300 4.435 5.160 5.234 6.192 6.176 7.430 7.288 8.916 8.599 10.699 10.147 12.839 11.974 15.407 27.393 38.338 62.669 95.396 143.371 | 237.376 750.378 1,469.772 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 1.138 1.149 1.161 1.220 1.282 1.348 1.489 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 1.886 1.980 2.079 2.653 3.386 4.322 7.040 1.486 1.641 1.811 2.208 9.646 17.000 29.960 93.051 Print Done Done