The localGiantTiger department store is considering investing in?self-checkout kiosks for its customers. The?self-checkout kiosks will cost$47,000 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:$17,000the first?year; $21,000 the second?year; $27,000 the third year. Assuming a

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

X Present Value of Annuity of $1 Present Value of Annuity of $1 Periods 6% 8% 10% 12% 14% 16% 0.943 0.926 0.909 0.893 0.877 0.862 2 1.833 1.783 1.736 1.690 1.647 1.605 3 2.673 2.577 2.487 2.402 2.322 2.246 A 3.465 3.312 3.170 3.037 2.914 2.798 5 4.212 3.993 3.791 3.605 3.433 3.274Future Value of $1 Future Value of $1 Period 6% 8% 10% 12% 14% 16% 1.060 1.080 1.100 1.120 1.140 1.160 2 1.124 1.166 1.210 1.254 1.300 1.346 1.191 1.260 1.331 1.405 1.482 1.561 4 1.262 1.360 1.464 1.574 1.689 1.811 5 1.338 1.469 1.611 1.762 1.925 2.100Present Value of $1 Present Value of $1 Period 6% 8% 10% 12% 14% 16% 0.943 0.926 0.909 0.893 0.877 0.862 2 0.890 0.857 0.826 0.797 0.769 0.743 0.840 0.794 0.751 0.712 0.675 0.641 4 0.792 0.735 0.683 0.636 0.592 0.552 5 0.747 0.681 0.621 0.567 0.519 0.476Wuestion LOT X Future Value of Annuity of $1 Future Value of Annuity of $1 Period 6% 8% 10% 12% 14% 16% 1.000 1.000 1.000 1.000 1.000 1.000 2 2.060 2.080 2.100 2.120 2.140 2.160 3 3.184 3.246 3.310 3.374 3.440 3.506 4 4.375 4.506 4.641 4.779 4.921 5.066 5.637 5.867 6.105 6.353 6.610 6.877(Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV is $ The NPV is and therefore the kiosks favourable investment