3. Riyadh Bank are considering filing an application with the state banking commission to charter a new bank. Due to a lack of current banking facilities within a 10-mile radius of the community, the organizing group estimates that the initial banking facility would cost about $3.3 million to build along with another $500,000 in other organizing expenses and would last for about 25 years. Total revenues are projected to be $400,000 the first year, while total operating expenses are projected to reach $160,000 in year 1. Revenues are expected to increase 4 percent annually after the first year, while expenses will grow an estimated 2 percent annually after year 1. If the organizers require a minimum of a 10 percent annual rate of return on their investment of capital in the proposed new bank, are they likely to proceed with their charter application given the above estimates? (3 Marks) Input Area: $3,300,000.00 $500,000.00 $400,000.00 Initial cost of banking facility Initial other organizing expenses Year 1 revenue Year 1 operating expense Annual growth rate in revenues Annual growth rate in expenses Required annual rate of return $160,000.00 4.00% 2.00% 10.00%