3. A branch of a bank considering installing cash machine to provide 24 hours service to their customers. The cash machines are expected to replace 4-full time employees who earn an annual salary of $70,000 per person in the current year, after which it is expected to grow at 2% annually. For simplicity, assume the salaries are paid annually at the end of each year. The operating cost of all the cash machines is expected to be $50000 yearly. These cash machines are expected to last 4 years and be sold for $70000 at the end of 4 years of operation. It will cost $900000 to purchase and install the machines today and additional $5000 for maintenance in the second year of operation. 60% of the fund for the project is financed through debt which has a cost of 6% p.a. the shareholders require an additional 5% p.a. on what creditors earn. a. Draw time line b. Calculate WACC c. Calculate NPV d. If the credit rating of the bank has been downgraded due to the impact of Covid-19 on the local economy, holding other factors constant, how would this change affect its cost of debt, and the cost of equity? Explain. 3. A branch of a bank considering installing cash machine to provide 24 hours service to their customers. The cash machines are expected to replace 4-full time employees who earn an annual salary of $70,000 per person in the current year, after which it is expected to grow at 2% annually. For simplicity, assume the salaries are paid annually at the end of each year. The operating cost of all the cash machines is expected to be $50000 yearly. These cash machines are expected to last 4 years and be sold for $70000 at the end of 4 years of operation. It will cost $900000 to purchase and install the machines today and additional $5000 for maintenance in the second year of operation. 60% of the fund for the project is financed through debt which has a cost of 6% p.a. the shareholders require an additional 5% p.a. on what creditors earn. a. Draw time line b. Calculate WACC c. Calculate NPV d. If the credit rating of the bank has been downgraded due to the impact of Covid-19 on the local economy, holding other factors constant, how would this change affect its cost of debt, and the cost of equity? Explain