A Restaurant Is Contemplating Replacing Its Service Staff with an Electronic

Multiple Choice

A restaurant is contemplating replacing its service staff with an electronic ordering process.Installing computers at each table will cost $150,000,but is expected to generate a cost savings of $40,000 per year for the next 10 years,when the computers will need to be replaced.If the restaurant has a cost of capital of 10%,what is the NPV of this investment?

A) -$90,000
B) $250,000
C) $95,783
D) -$150,000
E) $213,636