Classify each of the following capital investment decisions as either operational or strategic Briefly justify your answers.

1. A bank decides to build a new branch in the same town where it has 15 other branches. The new branch will cost \(\$ 200,000\) and will have an estimated service life of 25 years with a \(\$ 150,000\) residual value.

2. A bank decides to add automatic teller machines (ATMs) in the lobby of each of its 15 branches. The bank has never offered ATMs to customers in the past. The machines will have an estimated service life of 15 years with no residual value.

3. A company automates an entire production process that had not previously been automated. The automation includes computer-controlled equipment linked together in work cells. The machines will improve quality and increase the number of products offered, and they are expected to head off entry into the market by a major competitor. The machines will have an estimated useful life of nine years with a residual value of \(\$ 350,000\).

4. A company updates several pieces of factory equipment with new models. The new models have increased safety features and can operate faster than the older models. The new machines also have new features that will allow workers to perform tasks that the old machines could not perform. The estimated service life of the new machines is 10 years, and they will have a residual value of \(\$ 75,000\).