Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part 1 of 2 O Points: 0 of 2 Save The local supermarket is considering investing in sal-checkout kiosks for its customers. The self-checkout
Part 1 of 2 O Points: 0 of 2 Save The local supermarket is considering investing in sal-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: $12,000 the first year: $23,000 the second year, $27,000 the third year Assuming a 12% 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) 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 th nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV culator (Round your answer to the nearest The NPV Reference Present Value of Annuity of $1 Periods Period Period 2 Per Period 4 10% 18% 20% 0862 0847 0833 1% 2% 3% 4% 5% 10% 12% 14% 0.990 0380 0371 0.902 0952 0343 0926 0909 0893 0877 1970 1942 1913 1856 1859 1833 1783 1736 1600 1847 1805 1500 1528 2341 2884 2829 2775 2725 2673 2577 2487 2402 2.322 2205 2.174 2.106 3902 3808 3717 3630 3500 3455 3312 3175 3037 2914 2.700 2090 2589 4853 4713 4580 4452 4329 4212 3993 3791 36053-433 3274 3127 2901 575 5601 5417 5242 500 4917 4623 4355 411 3.389 3685 3.498 3.326 6728 6.472 6.230 6002 5786 5582 5208 4868 4504 4288 4039 3812 3405 Period 7652 7325 7020 6733 6400 6210 5747 5335 498 430 4344 4578 3837 Period 6566 6162 7.786 7435 7.108 6802 6247 5759 5328 4946 4607 4303 4.001 Period 15 471 8083 8530 811 7722 7300 670 6145 5650 5216 4833 4494 492 Period 11 13.368 9787 9253 8760 8306 7887 7139 6495 5938 5453 5.029 4856 4327 Period 12 11.255 10.575 9954 9385 883 8384 7538 6814 6154 5660 5157 4793 4439 Period 13 12.134 11.348 10835 9956 9394 8853 7.904 6434 5342 5342 4910 4533 5.299 9.295 8244 7367 6629 6002 5468 5.008 4615 712 8.500 7800 6311 6542 5575 5002 4675 Period 14 13.004 12 106 11.296 10.563 Period 15 135 1249 110 111 Period 20 18.046 18.351 14.877 Period 25 22:00318 523 17413 Period 30 25.808 22.396 19.800 Period 43 32 835 27355 23.115 1470 9818 8514 749 6623 5909 5353 4870 10675 9077 7843 6873 6002 5467 4948 5.372 13.765 11 258 9427 8055 7003 6177 5517 499 793 17.159 15.048 15 905 779 244 7108 6233 5548 4007 Print Done x (Round your answer to the n The NPV is Reference Future Value of Annuity of $1 1% 0% 1000 1000 2050 2060 Period 3 Period 4 Period 5 Period Period 7 Period Periods 15 2% 3% 4% 12% 29% Period 1000 1000 1000 1.000 1000 1.000 1.000 1.000 1.000 1.000 1.000 2010 2020 2030 2040 2080 2100 2120 2140 2560 2180 2.200 3000 3000 3091 3122 3153 31M 3248 3310 3374 3440 3500 3572 3.640 4000 4122 4M 4240 4310 4375 4506 4641 4779 4921 5066 5215 5368 5101 5204 5309 5416 5526 5637 5867 6105 6353 6610 6877 7154 7.442 6152 6308 6400 6433 82 6975 7336 7.716 115 8536 9930 7214 7434 7662 7800 8.142 8304 8923 9467 10089 10730 11414 12142 12916 8206 85838802 $214 $549 5857 10637 11436 12.300 13.233 0150 10.583 11.007 11491 12.45 13579 14.776 16065- 1464 12006 12.578 13181 14.457 15807 17 549 54% 18% 8577 5442 14240 15327 16409 17519 21321 2301 20.790 25950 Period 12 11.567 12.100 12.808 12683 13412 14182 Period 13 138 15.618 6627 14.207 4.372 6645 18531 20 655 15917 16.870 1877 21 364 24 133 17.713 8882 21405 24523 2009 23045 27271 320 Period 14 14 SET Period 15 16.007 17293 16.599 20024 25.579 23.276 27 152 31772 37 280 43542 38733 38755 32.150 30850 3401 36706 42219 45.457 43672 50818 50196 $1000 8005 72016 30.581 Period 25 Period 30 25.343 32030 56450 34785 47727 54 575 506 8347 133.334 181871 24214 342803 471961 66.439 79 0113 283 164 454 241 333 356 787 530312 790 545 1.18 008 130 800 154 762 256 057 442 540 767 095 1342 025 236079741802137 438 Print Done x (Round your answer to the nearest The NPV Reference Present Value of 20% Periods 1% 2% 3% 4% 15 10% 12% 54% Period 1990 030 031 02 092 093 0905 909 0830 0877 0862 0847 0833 Period 2 09800961 0043 0325 07 08 07 0820 0787 0709 743 0715 044 Period 3 0971 542 0915 089 084 0840 0704 0751 6712 0675241 0409 0579 Period 4 09010824 0888 055 0823 0752 0735 0683 0830 0502 552 0516 0482 Period 0351 0306 0863 0822 0784 0747 081 0421 0567 0519 476 0437 0402 Period 342 0208 0837 0790 0745 0705 0.630 0564 050 0456 0410 0370 0335 Period? 33 0871 0813 020 071 0ees 0583 0513 0452 0400 0354 0314 0.279 0.003 0.853 6789 0731 0677 0627 0540 0467 0404 0301 0305 0206 0233 Period 0914 0837 6756 0723 0645 0582 05000424 0361 0308 0203 0225 0.154 0.005 0320 0764 DEN 0614 00 03 384 323 0279 0227 0101 0162 Period 11 00 6804 0722 0650 0585 0527 0429 0350 0287 0237 0195 062 0135 Period 12 887 078 072 025 0057 0407 037 4319 0257 0208 0168 0137 0112 Period 13 879 0773 0681 08010530 0409 0308 0290 0229 0182 0145 1180083 Period 14 0870 0758 0681 0577 0505 0442 0340 0263 0205 160 0125 0099 078 Period 15 086 0.343 0642 0555 0481 0417 0315 6239 183 140 0100 0004005 Period 20 0800 0673 054 0456 0377 0312 0215 0149 0304 073 000 000 00 Period 25 0.70 0.610 0478 0375 0296 0233 044 002 0000 0038 0004 0016 0010 Period 30 0342 052 0412 0308 0231 0174 00067 0023 020 0012 0.007004 Period 40 872 453 0307 0208 0143 004 0022 00100050003 0.001001 Print Done x (Round your anwar to the new The NPV Reference Fo Period 2 3 Period Period? 1349 Periods 1% 2% 75 5% 1010 1.000 1.000 1040 1050 1020 1040 1081 1082 1100 1000 1061 1083 1.125 115 1041 1082 1125 1130 1216 10 1104 1.159 1217 127 1062 112 114 1265 1340 1.072 149 1230 1316 1083 1172 1267 1309 14 1196 1306 1405 1108 1219 1344 1.116 1243 134 1426 1294 1400 1319 1813 w 10% 12% 14% 10% 18% 1480 1429 1000 1060 1100 1.120 1140 1160 1.180 1300 1124 110 1210 1254 1300 1340 1302 1440 1.191 1200 1311 1405 1482 1301 1043 1728 1262 1300 1574 18 tatt 1909 2014 1.338 1400 1411 1762 1825 2100 1419 1587 1772 1974 2105 240 2700 1504 1754 1943 2211 2502 2823 1851 2144 2476 2853 3273759 1.000 2358 2773 3252 18034435 $100 1795 215 2954 3106 170 4411 6234 3583 4300 1539 1710 1000 2302 2853 3479 4225 17 6176 1600 170 2012 2518 4818 5.900 7318 1005 12.133 2720 3452 5402 7.430 3.800 10000 Period 1732 1900 2201 2907 377 487 6381 TOM 10147 1801 209 2387 3172 4177 5474 7138 1400 1800 2 Pariet 8 17:00 3243 4322 743 10063 17 440 29 60 50 950 850 143371 337 37 1409 2200 3200 Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started