DirectJet has installed 30 electronic kiosks at its Pittsburg hub. The kiosks enable passengers to check in, to view seat assignments, to make seat changes, to review itineraries, and to print boarding passes more quickly. The net cost of each kiosk is $50,000 and the airline expects the following cash flows in the form of decreased labor costs:

a. 9D

b. C. If the cost of capital is 8 percent, what is the NPV of each kiosk? What is the payback period? What is the discounted payback period?

d. What is the internal rate of return (IRR)?

e. Do you recommend that DirectJet purchase new electronic kiosks?

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Year Cash flow ($) 0 -50,000 1 +6,000 - 2 3 234 +9,000 +12,000 +15,000 5 +20,000