1. Second National Bank is considering adding 5 new ATM machines. Each machine costs $25,000 and installation costs are $15,000 per machine. Second National Bank expects the new machines to save $0.33 per transaction on 250,000 transactions per year on the new machines. It also expects the new machines to last for 15 years. If the bank needs to earn 14 percent return on this investment, what is the net present value of this investment? 2.Third State Bank wants to add a new branch office. It has determined that the cost of construction of the new facility will be $1.5 million with another $500,000 in organizational costs. The bank has estimated that it will generate $319,522 per year in net revenues. If the new branch is expected to last 20 years, what is the expected rate or return on this investment? (Round to the nearest whole percent) 3.Murphy National Bank is thinking about adding a new branch in a very different market area. It estimates that the new office will have an expected return of 16% with a standard deviation of 8%. Currently, it has an expected return of 12% with a standard deviation of 4%. The correlation between the returns on the new branch and the bank's current returns is estimated to be 0.20. The bank estimates that the new branch will represent 15 percent of the revenues of the bank. What is the expected return of the bank with the new branch? 4.Murphy National Bank is thinking about adding a new branch in a very different market area. It estimates that the new office will have an expected return of 16% with a standard deviation of 8%. Currently, it has an expected return of 12% with a standard deviation of 4%. The correlation between the returns on the new branch and the bank's current returns is estimated to be 0.20. The bank estimates that the new branch will represent 15 percent of the revenues of the bank. What is the bank's expected risk (measured by the standard deviation) with the new branch? Round to the nearest 0.1 percent. 5.Chester National Bank is considering adding a new branch bank. It knows that it will cost $2.5 million to build the branch and it believes that it will generate $214,526 per year for the next 25 years. Chester National Bank requires a return of 10% on all new projects it undertakes. What is this project's expected rate of return or internal rate of return? (Round to the nearest whole percent) 6.The Chahad Bank wants to open a new branch in a distant city with very different economic conditions. Currently, the bank has an expected return of 15% with a standard deviation of 7%. The new branch is expected to have a return of 20% with a standard deviation of 10%. The correlation between the bank's returns and the returns from the new branch is -0.3. The new branch is expected to contribute 10% of the bank's revenues. What is the standard deviation of returns for the bank if they add the new branch? (Round your answer to the nearest 0.1%) 7.The Chahad Bank wants to open a new branch in a distant city with very different economic conditions. Currently, the bank has an expected return of 15% with a standard deviation of 7%. The new branch is expected to have a return of 20% with a standard deviation of 10%. The correlation between the bank's returns and the returns from the new branch is -0.3. The new branch is expected to contribute 10% of the bank's revenues. What is the expected return for the bank if they add the new branch