The local supermarket is considering investing in self-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: $15,000 the first year; $18,000 the second year, $25,000 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 the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV is Reference Present Value of Annuity of $1 Periods Period 1 0.990 Period 2 1.970 Period 3 2.941 Period 4 3.902 Period 5 4.853 Period 6 5.795 Period 7 6.728 Period 8 7.652 Period 9 8.566 Period 10 9.471 1% 2% 3% 0.980 0.971 0.962 1.942 1.913 1.886 2.884 2.829 2.775 3.808 3.717 3.630 4.713 4.580 4.452 4% 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 1.859 1.833 1.783 1.736 1.690 2.723 2.673 3.546 3.465 1.647 1.605 1.566 1.528 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.601 5.417 5.242 5.076 4.917 4.623 355 4.111 3.889 3.685 3.498 3.326 5.786 5.582 Period 11 10.368 9.787 9.253 8.760 Period 12 11.255 10.575 9.954 9.385 Period 13 12.134 Period 14 13.004 Period 15 13.865 6.472 6.230 6.002 5.206 4.868 4.564 4.288 4.039 3.812 3.605 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 8.306 7.887 7.139 6.495 5.938 5.453 5.029 8.863 8.384 7.536 6.814 6.194 5.660 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 12.849 11.938 11.118 10.380 9.712 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 6.002 5.468 5.008 4.611 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 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 7.003 6.177 5.517 4.979 7.105 6.233 5.548 4.997 Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 Period 4 4.060 4.122 4.484 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 Period 6 6.152 6.308 6.468 6.633 6.802 Period 7 7.214 7.434 7.662 7.898 8.142 Period 8 8.286 8.583 8.892 Period 9 9.369 9.755 6.975 7.336 8.394 8.923 9.487 9.214 9.549 9.897 10.637 11.436 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 7.716 8.115 8.536 8.977 10.089 10.730 11.414 12.300 13.233 14.240 16.085 17.519 Period 10 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 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 66.439 79.058 113.283 164.494 241.333 356.787 530.312 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 17.549 19.337 21.321 23.045 25.733 27.271 30.850 32.089 36.786 37.581 43.672 43.842 51.660 91.025 115.380 249.214 - Reference Present Value of $1 - Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.909 0.893 0.826 0.797 0.751 0.712 0.877 18% 20 0.862 0.847 0. Period 4 0.961 0.924 0.888 0.855 0.823 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 794 0.641 0.609 0. 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0. 0.567 0.519 0.476 0.437 0. 0.769 0.743 0.718 0.0 0.675 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0. Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.1 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0. Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0. Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0. Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0. Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0. Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.0 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0. Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0. Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0. Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0. Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0. Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.0 Print Done Reference Future Value of $1 - Periods 1% 2% 3% 4% 5% Period 1 1.010 1.020 1.030 1.040 1.050 Period 2 1.020 1.040 1.061 1.082 Period 3 1.030 1.061 1.093 1.125 Period 4 1.041 1.082 1.126 1.170 1.360 1.464 6% 8% 10% 12% 14% 16% 18% 1.060 1.080 1.100 1.120 1.140 1.160 1.18 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.39 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.64 1.216 1.262 1.574 1.689 1.811 1.93 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.28 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.70 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.18 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.75 Period 9 1.094 Period 10 1.105 Period 11 1.116 1.127 1.195 1.305 1.423 1.551 1.689 1.999 2.358 1.219 1.344 1.480 1.629 1.791 2.159 2.773 3.252 2.594 3.106 3.707 4.411 3.803 4.43 5.23 Period 12 Period 13 1.138 1.294 1.243 1.384 1.268 1.426 1.469 Period 14 1.149 1.319 1.513 Period 15 1.161 1.346 1.558 Period 20 1.220 1.486 1.806 Period 25 1.282 1.641 2.094 Period 30 1.348 1.811 2.427 Period 40 1.489 2.208 3.262 1.539 1.710 1.898 1.601 1.796 2.012 1.665 1.886 2.133 1.732 1.980 2.261 6.261 7.988 10.14 1.801 2.079 2.397 7.138 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.39 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.66 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.3 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.3 5.474 2.332 2.853 3.479 4.226 5.117 6.17 2.518 3.138 3.896 4.818 5.936 7.28 2.720 3.452 4.363 5.492 6.886 8.59 2.937 3.797 4.887 3.172 4.177 9.266 11.97