Instructions. Calculate the Net Present Value of the new checkout equipment. In 2023, the fashion retailer FashRet

  

 

Instructions.

Calculate the Net Present Value of the new checkout equipment.

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In 2023, the fashion retailer FashRet considers installing a new checkout system for some of its stores. The new system will be faster and more accurate. While the useful life of the new checkout system is 6 years, FashRet plans to use the new checkout system for 3 years and then sell it for 35,000$. Below are the relevant data for the decision. New checkout Equipment Acquisition cost of new equipment Cost to retrain checkout personnel Cost to retag merchandise release OF MERCHANDISE INVENTORY Incremental and annual data for the new checkout equipment are; $55,000 $2,000 $4,000 $15,000 In 2023, the fashion retailer FashRet considers installing a new checkout system for some of its stores. The new system will be faster and more accurate. While the useful life of the new checkout system is 6 years, FashRet plans to use the new checkout system for 3 years and then sell it for 35,000$. Below are the relevant data for the decision. New checkout Equipment Acquisition cost of new equipment Cost to retrain checkout personnel Cost to retag merchandise release OF MERCHANDISE INVENTORY Incremental and annual data for the new checkout equipment are; $55,000 $2,000 $4,000 $15,000

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the new checkout equipment we need to calculate the cash flows associated with the equipment over its useful life and discount them to their present value The... View the full answer