The local supermarket is considering investing in self check out kiosks for its customers. The self check out kiosks will cost $48,500 and have no residual value. Management expects the equipment to result in cash savings over three years as customers grow accustomed to using the new technology: $14,000 the first year: $19,000 the second year: $26000 the third year. Assuming a 10% discount rate what is the NPV at the kiosk investment? Is this favorable?

The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $48.500 and have no residual value. Management expects the equipment to rewutin net savings over three years as customers grow accustomed to using the new technology $14.000 the first year, 510.000 the second year, $26.000 the third year Assuming a 10% discount rate, what is the NPV of the cost investment? Is this a favorable invent? Why why not? Click the icon to view the presentatie of only able) Click the loon to view the present value table) Cick the loon to vw the future value of an annutyle Click the icon to view the future valuable) Round your wer to the nearest wnole dot. Une parenthesis or a minus informie net present) The NPV A Reference Ma 26,00 Present Value of $1 nd Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.9800.961 0.943 0.925 Period 3 0.971 0.942 0.915 0.889 Period 4 0.961 0.924 0.888 0.855 Period 5 0.951 0.906 0.863 0.822 Period 6 0.942 0.888 0.837 0.790 Period 7 0.933 0.871 0.813 0.760 Period 8 0.923 0.853 0.789 0.731 Period 9 0.914 0.837 0.766 0.703 Period 100.905 | 0.820 0.744 0.676 Period 11 0.896 0.804 0.722 0.650 Period 120.887 0.788 0.701 0.625 Period 13 0.879 0.773 0.681 0.601 Period 14 0.870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.9070.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.481 0.417 0.315 0.239 0.183 0.1400.108 0.084 0.065 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.295 0.233 0.146 0.092 0.0590.038 0.024 0.016 0.010 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Period 20 0.820 0.673 0.554 0.456 Period 25 0.780 0.610 0.478 0.375 Period 30 0.742 0.552 0.412 0.308 ar Print Done C i Reference X ng in hree ne ki N 26 sent re va whd Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.0 3.812 3.605 Period 8 7.652 7,325 7.020 6.733 6.463 6.210 5.747 5.335 4.9684.639 4.344 4.078 3.837 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.3284.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.3847.536 6.814 6.1945.660 5.197 4.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 6.002 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.5147.469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 5.517 4.979 ds ar Print Done X 0 Reference sid ave e 3% 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2 200 3.640 5.368 7.442 al Future Value of Annuity of $1 Periods 1% 2% 5% 6% 8% 10% 12% 14% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2010 2020 2030 2040 2.050 2.060 2080 2.100 2.120 2.140 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3,310 3.374 3.440 Period 4 4.060 4.122 4.184 4246 4.310 4.375 4.506 4.641 4.779 4.921 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 Period 7 72147.4347.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 Period 14 14 947 15.974 17.086 18.292 19.599 21.015 24 215 27.975 32 393 37.581 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57 27572052 91.025 Period 25 28 243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 Period 30 34.785 40.568 47.575 56.085 66.43979.058 113.283 164.494 241.333 356.787 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15 327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 115,380 249.214 530.312 146.628 186.688 342 603 471.981 790 948 1,181.882 fit f| Print Done i Reference Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% % 1.020 1.030 1.040 1.061 1,061 1.093 1.082 1.126 1.104 1.159 S 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 Future Value of $1 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 2.079 2.397 3.172 4.177 5,474 7,138 9.266 11.974 15.407 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 4.322 5.743 10.06317.449 29.960 50.950 85.850 143.371 237.376 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.220 1.282 1.348 1.486 1.641 1.811 1.806 2.094 2.427 2.191 2.666 3.243 eld Print Done