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