The Purple Power Grocery Store is considering installing self-checkout machines. The following information is available to managers decide on investing in the three year project:

Cost of the project, including training	$300,000
Working capital required	$40,000
Annual savings in checkers and baggers	$165,000
Annual cost to operate machines	$25,000
Repairs in year 2	$30,000
Salvage value at the end of year 3	$55,000
Depreciation each year over 3-year life	$100,000
Tax rate	25%
Cost of capital	10%

Complete the following using Microsoft Excel and submit.

1) Compute the net present value of the project.

2) Compute the internal rate of return of the project.

3) Make a recommendation addressing the issues of mission, strategy, ethics and the balancing of all stakeholders.