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

$45,500 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: $17,000 the first year; $22,000 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?

The NPV is $_______

Whats the NPV at 12%?

Periods 39 4% 14% 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 1.030 1.061 1.093 1.126 1.159 1.040 1.082 1.125 1.170 5% 1.050 1.103 1.158 1.216 1.276 Future Value of $1 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1.217 1.772 2.195 1.949 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 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.144 1.974 2.211 2.476 2.773 3.106 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 2.358 2.159 2.594 1.243 1.268 2.853 7.430 4.226 4.818 1.116 1.127 1.138 1.149 1.161 1.384 1.426 1.469 1.513 1.558 1.294 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 3.479 3.896 4.363 4.887 5.474 5.117 5.936 6.886 5.492 6.176 7.288 8.599 10.147 11.974 8.916 10.699 12.839 15.407 7.988 1.319 1.346 3.797 4.177 6.261 7.138 9.266 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1,469.772 Periods 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 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 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 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 7.336 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 6.802 8.142 9.549 11.027 12.578 6.975 8.394 9.897 11.491 13.181 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 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 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 79.058 154.762 45.762 73.106 113.283 259.057 57.275 72.052 91.025 115.380 146.628 186.688 98.347 133.334 181.871 249.214 342.603 471.981 164.494 356.787 530.312 790.948 1,181.882 442.593767.091 1,342.025 2,360.757 4,163.213 7,343.858 4.917 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 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 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 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 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 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 5.795 5.601 5.417 5.242 5.076 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 | 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 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 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 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 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 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.0025.468 5.008 4.611 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 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 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 | 25.808 | 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.1775.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 Periods 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 0.942 0.933 0.888 0.871 0.853 0.837 0.820 Present Value of $1 5% 6% 8% 10% 12% 0.952 0.943 0.926 0.9090.893 0.907 0.890 0.8570.826 0.797 0.864 0.840 0.794 0.751 0.712 0.823 0.792 0.735 0.683 0.636 0.784 0.747 0.681 0.621 0.567 0.746 0.705 0.630 0.564 0.507 0.711 0.665 0.583 0.513 0.452 0.677 0.627 0.540 0.467 0.404 0.645 0.592 0.500 0.424 0.361 0.614 0.558 0.463 0.386 0.322 0.585 0.527 0.429 0.350 0.287 0.557 0.497 0.397 0.319 0.257 0.530 0.469 0.368 0.290 0.229 0.505 0.442 0.340 0.263 0.205 0.481 0.417 0.315 0.239 0.183 0.377 0.312 0.215 0.149 0.104 0.295 0.233 0.146 0.092 0.059 0.231 0.174 0.099 0.057 0.033 0.142 0.097 0.046 0.022 0.011 ip 0.270 14% 16% 18% 20% 0.877 0.862 0.847 0.833 0.769 0.743 0.7180.694 0.675 0.641 0.609 0.579 0.592 0.552 0.516 0.482 0.519 0.476 0.437 0.402 0.456 0.410 0.370 0.335 0.400 0.354 0.314 0.279 0.351 0.305 0.266 0.233 0.308 0.263 0.225 0.194 0.227 0.191 0.162 0.237 0.1950.162 0.135 0.208 0.168 0.137 0.112 0.182 0.145 0.116 0.093 0.160 0.125 0.099 0.078 0.140 0.108 0.084 0.065 0.073 0.051 0.037 0.026 0.038 0.0160.010 0.0200.0120.007 0.004 0.005 0.003 0.001 0.001 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 0.896 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 0.804 0.788 0.773 0.758 0.743 0.861 0.780 0.742 0.672 0.673 0.610 0.552 0.453