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The local supermarket is considering investing in self - checkout kiosks for its customers. The self - checkout kiosks will cost $ 4 9 comma

The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $ 49 comma 500 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: $ 10 comma 000 the first year; $ 26 comma 000 the second year; $ 29 comma 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?

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