Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the local supermarket is considering investing in

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

50.1K

Verified Solution

Question

Accounting

The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $47,500and 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: $13,000 the first year; $21,000 the second year; $24,000 the third year.

Assuming a 14% discount rate, what is the NPV of the kiosk investment?

Is this a favorable investment? Why or why not?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

X y 2 Given Find x and A X A ABCD EC ED 2y 10...

Geometry
Q

PQR stock is selling for $38 a share. A $40 call on this stock is priced...

Finance
Q

A computer manufacturer offers the possibility of purchasing computers via the Internet. The customer can select...

Programming
Q

information about the metal additive manufacturing process and defects and parameters

Mechanical Engineering
Q

Consider a nonhomogeneous differential equation ??? + 2?? + ? = 2? sin? (a) Find any particular...

Advance Math
Q

How large is FedEx as measured by the number of its employees? How many levels in...

General Management
Q

An infinite conducting sheet has surface charge density o The distance between two equipotentia surfaces...

Physics
Q

Fill in the blank so that the resulting statement is true sec B sec 1...

Calculus
Q

2 Witt Corp. has outstanding at December 31, 1996, two long-term borrowings with...

Accounting
Q

Within a "relevant range," which of the following statements about fixed costs is true? A....

Accounting
Q

The comparative balance sheets for 2018 and 2017 are given below for Surmise Company. Net...

Accounting
Q

Here are data on two companies. The T-bill rate is 4.6% and the market risk...

Finance