Question: Dixie Chicken is considering installing a new Coke Freestyle machine in one of its franchise stores. The machine will cost $6,153.00 today, and have an

Dixie Chicken is considering installing a new Coke Freestyle machine in one of its franchise stores. The machine will cost $6,153.00 today, and have an annual operational cost of $1,523.00. The machine will increase store revenues by $2,635.00 in the first year. The owner expects that the additional revenues will increase by 4.00% per year going forward. The operational cost will remain at $1,523.00 per year. Dixie Chicken has a 9.00% cost of capital and will value this opportunity over 6.00 years. What is the NPV of the new freestyle machine?

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