S12-12 (similar to) Question Help The local 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: $12,000 the first year, $18,000 the second year; $24,000 the third year. Assuming a 10% discount rate, what is the NPV of the kiosk investment? Is this a favorable investment? Why or why nat? Pilclick the loon 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 the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV is $ estment? W Periods 16% 18% 0.980 GN T 0.862 1.605 2.246 2.798 3.274 3.685 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 4.329 111 3.889 3.498 5.206 868 1335 4.039 3.812 3.326 3.605 3.837 .344 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 0.990 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 1.690 1.647 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 24022.322 3.902 3.808 3.717 3.630 3.546 3.465 3.170 3.037 2914 4.853 4.713 4.580 4.452 4.212 3.791 3.605 3.433 5.795 5.601 5417 5.242 5.076 4.917 4.355 6.728 6.472 6.230 6.002 5.786 5.582 .564 7.652 7.325 7.020 6.733 6.463 6.210 5.747 4.968 8.566 8.162 7.786 7435 7.108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 5.650 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 9.899 9.295 8.244 7.367 6.628 6.002 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.606 811 6.142 16.351 14.877 13.590 12.462 11.470 9.818 7.469 6.623 22.023 19.5231741315.622 14.094 12.783 10.675 9.077 7.843 1.873 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.003 32.835 27.355 23.115 19.793 17,159 15.046 | 11.925 9.779 | 8.244 7 105 078 303 4.946 4,607 4.031 6.145 833 94 5.029 656 .793 5.197 5.342 910 5.468 1.008 514 25 30 948 353 6.097 5.467 6.1775.517 | 6.233 5.548 4.979 4.997 | 1.000 2. 120 3.374 | 14% 1.000 2.140 3.440 4.921 6.610- 1.00 2.020 3.060 4.122 5204 6.305 7.434 ,583 6.353 5 2 5 6 Team HUD=6 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9369 10.462 11.567 12.683 13.809 14.847 16.097 22 019 28 243 34.75 48 896 Future Value of Annulty of $1 | 10%, 1.000 1.000 1.00 1.000 1.000 1.000 2.030 2.040 2.050 2.060 2.00 2.100 3.001 3.12 3.15 3. 14 3246 3.310 4.184 4.246 4.310 4.375 4.506 4.641 5.300 5.416 5.526 5.637 5.867 6.105 6.46 5.633 6.802 6.975 17.336 7716 7.62 7.898 8.142 8.4 | 6.923 2.467 6.92 9214 9.549 197 10.637 11.436 | 10.159 | 10.563 | 11.027 11.41 2.4 13.579 11.464 12.006 12.578 13.18] | 4.487 15.937 12.80 13.46 | 14.207 | 14.92 16.645 18.531 14.1 15.026 15.917 | 16.80 | 16.977 21.38M 15.618 16.627 17713 | 16.882 21.4$ 24.523 7.086 18.292 19.599 21.015 24.215 27.975 18.599 20.024 21.579 23.276 | 27.152 31.2 .870 | 29.78 - 33.06 18 | 45.762 ,275 36.49 | 41.646 | | 47.727 | 4.665 3.106 6.347 47.575 1 .06 | 6.439 79.058 | 113263 14.49 T5401 - 15.02 | | 120.800 | 14.72 259.057 42.593 10.950 2.168 13.412 14.60 15.974 4.115 6.536 10.08 10.730 12.300 13 233 14.776 16.085 17.49 19.337 20.65 23.045 24.133 27 27] 26.029 32.089 32.393 37.58] 37.260 3.642 72.052 91.025 133.334 161.87] 241.333 358,787 767,001 |1,342.025 14 20% 1000 1.000 1000 2.160 2.16 2200 3.506 13.52 3.64IO 5.066 15215 5.366 16. 87 17.154 7.42 | 8.97 | 9.442 9.930 11.414 | 12.142 12.916 14.240 | 15.327 16.499 17.519 | 19.066 20.79 21.321 | 23.521 25.959 25.733 | 28.75 2.1680 30.850 34.931 36.581 36.786 | 42.219 48.497 43.672 50.818 59.196 51.660 60.965 2.035 115.360 146.628 249.214 | 342.603 | 471.981 530.312 | | 790.946 |1.161.682 2.360.77 4.163.213 17.343.856 47 28 16.666 24 297 32 000 40.568 0.402 Periods 4% 0.962 0.925 0.889 0.855 0.822 0.583 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% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.863 0.888 0.837 0.871 0.853 0.837 0.820 0.804 0.722 0.788 0.701 0.773 0.681 0.758 0.661 0.743 0.642 0.673 0.554 0.610 0.478 0.5520.412 0.453 0.307 0.790 0.760 0.731 0.703 0.676 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 0.794 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 0.513 0.677 0.627 0.540 0.467 0.645 0.592 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 0.263 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 0.1740.099 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 0.1040.073 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 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 Future Value of $1 8% 18% 20% Periods 5% 1.180 1.100 1.040 1.010 1.050 1.103 1.082 1.060 1.124 1.191 1210 1.729 1.158 1.216 1276 1.338 1.611 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 1419 1.504 2.074 2.488 2.986 3.583 4.300 5.160 6.192 1.594 1.689 1.791 1.344 1.140 1.300 1482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 6.492 6.261 7.138 13.743 26.462 50.950 188884 16% 1.160 1.346 1.561 1.811 2.100 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 2332 1,551 1.629 1.710 1.796 1.886 1.980 2.079 1.116 1.127 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62 669 143.371 750 378 1.138 1.243 1.268 1.294 1.319 1.346 1.486 1949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17449 45.259 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 2.211 2476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 1.898 2012 2.133 2261 2.397 3.207 1.149 1.161 1220 7.430 8.916 10.699 12.839 15.407 2.518 2.720 2937 3.172 4.661 6.848 10.063 21.725 38.338 4292 4322 5.743 10.286 7.040 237 378 1,469.772 S12-12 (similar to) Question Help The local 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: $12,000 the first year, $18,000 the second year; $24,000 the third year. Assuming a 10% discount rate, what is the NPV of the kiosk investment? Is this a favorable investment? Why or why nat? Pilclick the loon 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 the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV is $ estment? W Periods 16% 18% 0.980 GN T 0.862 1.605 2.246 2.798 3.274 3.685 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 4.329 111 3.889 3.498 5.206 868 1335 4.039 3.812 3.326 3.605 3.837 .344 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 0.990 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 1.690 1.647 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 24022.322 3.902 3.808 3.717 3.630 3.546 3.465 3.170 3.037 2914 4.853 4.713 4.580 4.452 4.212 3.791 3.605 3.433 5.795 5.601 5417 5.242 5.076 4.917 4.355 6.728 6.472 6.230 6.002 5.786 5.582 .564 7.652 7.325 7.020 6.733 6.463 6.210 5.747 4.968 8.566 8.162 7.786 7435 7.108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 5.650 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 9.899 9.295 8.244 7.367 6.628 6.002 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.606 811 6.142 16.351 14.877 13.590 12.462 11.470 9.818 7.469 6.623 22.023 19.5231741315.622 14.094 12.783 10.675 9.077 7.843 1.873 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.003 32.835 27.355 23.115 19.793 17,159 15.046 | 11.925 9.779 | 8.244 7 105 078 303 4.946 4,607 4.031 6.145 833 94 5.029 656 .793 5.197 5.342 910 5.468 1.008 514 25 30 948 353 6.097 5.467 6.1775.517 | 6.233 5.548 4.979 4.997 | 1.000 2. 120 3.374 | 14% 1.000 2.140 3.440 4.921 6.610- 1.00 2.020 3.060 4.122 5204 6.305 7.434 ,583 6.353 5 2 5 6 Team HUD=6 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9369 10.462 11.567 12.683 13.809 14.847 16.097 22 019 28 243 34.75 48 896 Future Value of Annulty of $1 | 10%, 1.000 1.000 1.00 1.000 1.000 1.000 2.030 2.040 2.050 2.060 2.00 2.100 3.001 3.12 3.15 3. 14 3246 3.310 4.184 4.246 4.310 4.375 4.506 4.641 5.300 5.416 5.526 5.637 5.867 6.105 6.46 5.633 6.802 6.975 17.336 7716 7.62 7.898 8.142 8.4 | 6.923 2.467 6.92 9214 9.549 197 10.637 11.436 | 10.159 | 10.563 | 11.027 11.41 2.4 13.579 11.464 12.006 12.578 13.18] | 4.487 15.937 12.80 13.46 | 14.207 | 14.92 16.645 18.531 14.1 15.026 15.917 | 16.80 | 16.977 21.38M 15.618 16.627 17713 | 16.882 21.4$ 24.523 7.086 18.292 19.599 21.015 24.215 27.975 18.599 20.024 21.579 23.276 | 27.152 31.2 .870 | 29.78 - 33.06 18 | 45.762 ,275 36.49 | 41.646 | | 47.727 | 4.665 3.106 6.347 47.575 1 .06 | 6.439 79.058 | 113263 14.49 T5401 - 15.02 | | 120.800 | 14.72 259.057 42.593 10.950 2.168 13.412 14.60 15.974 4.115 6.536 10.08 10.730 12.300 13 233 14.776 16.085 17.49 19.337 20.65 23.045 24.133 27 27] 26.029 32.089 32.393 37.58] 37.260 3.642 72.052 91.025 133.334 161.87] 241.333 358,787 767,001 |1,342.025 14 20% 1000 1.000 1000 2.160 2.16 2200 3.506 13.52 3.64IO 5.066 15215 5.366 16. 87 17.154 7.42 | 8.97 | 9.442 9.930 11.414 | 12.142 12.916 14.240 | 15.327 16.499 17.519 | 19.066 20.79 21.321 | 23.521 25.959 25.733 | 28.75 2.1680 30.850 34.931 36.581 36.786 | 42.219 48.497 43.672 50.818 59.196 51.660 60.965 2.035 115.360 146.628 249.214 | 342.603 | 471.981 530.312 | | 790.946 |1.161.682 2.360.77 4.163.213 17.343.856 47 28 16.666 24 297 32 000 40.568 0.402 Periods 4% 0.962 0.925 0.889 0.855 0.822 0.583 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% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.863 0.888 0.837 0.871 0.853 0.837 0.820 0.804 0.722 0.788 0.701 0.773 0.681 0.758 0.661 0.743 0.642 0.673 0.554 0.610 0.478 0.5520.412 0.453 0.307 0.790 0.760 0.731 0.703 0.676 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 0.794 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 0.513 0.677 0.627 0.540 0.467 0.645 0.592 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 0.263 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 0.1740.099 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 0.1040.073 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 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 Future Value of $1 8% 18% 20% Periods 5% 1.180 1.100 1.040 1.010 1.050 1.103 1.082 1.060 1.124 1.191 1210 1.729 1.158 1.216 1276 1.338 1.611 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 1419 1.504 2.074 2.488 2.986 3.583 4.300 5.160 6.192 1.594 1.689 1.791 1.344 1.140 1.300 1482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 6.492 6.261 7.138 13.743 26.462 50.950 188884 16% 1.160 1.346 1.561 1.811 2.100 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 2332 1,551 1.629 1.710 1.796 1.886 1.980 2.079 1.116 1.127 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62 669 143.371 750 378 1.138 1.243 1.268 1.294 1.319 1.346 1.486 1949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17449 45.259 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 2.211 2476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 1.898 2012 2.133 2261 2.397 3.207 1.149 1.161 1220 7.430 8.916 10.699 12.839 15.407 2.518 2.720 2937 3.172 4.661 6.848 10.063 21.725 38.338 4292 4322 5.743 10.286 7.040 237 378 1,469.772