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

$46,000

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:

$17,000

the first year;

$20,000

the second year;

$27,000

the third year. Assuming a

10%

discount rate, what is the NPV of the kiosk investment? Is this a favorable investment? Why or why not?