Question 2 Four Square Supermarkets are deciding whether to put in self-serve checkout machines in their stores. Each machine costs $350,000 and will be depreciated to zero at the end of its five year life. The projected income per machine is $375,000. Operating expenses (not including depreciation) are estimated to be $225,000 including $25,000 of allocated overhead Each machine will require additional working capital of $50,000 which can be recovered at the end of five years. The company tax rate is 30%. (b) If the opportunity cost of capital is 10%, what is the net present value (NPV) of this project? Show your workings (10 marks) Question 2 Four Square Supermarkets are deciding whether to put in self-serve checkout machines in their stores. Each machine costs $350,000 and will be depreciated to zero at the end of its five year life. The projected income per machine is $375,000. Operating expenses (not including depreciation) are estimated to be $225,000 including $25,000 of allocated overhead Each machine will require additional working capital of $50,000 which can be recovered at the end of five years. The company tax rate is 30%. (b) If the opportunity cost of capital is 10%, what is the net present value (NPV) of this project? Show your workings (10 marks)