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Albilad Bank decides to install 2 ATMs near to its one of the branches of the full service in Dammam. Each ATM costs 35000 SAR
Albilad Bank decides to install 2 ATMs near to its one of the branches of the full service in Dammam. Each ATM costs 35000 SAR to the bank. ATM Installation cost is 16000 SAR for each machine. Each ATM has a projected life of 10 years. Both ATMs are expected to handle 50,000 cashtransactions collectively, and, on average, the bank can save 0.40 SAR on each transaction in teller expenses. If Albilad bank has a 12% cost of capital, should the bank go ahead with this Investment in 2 ATMs?
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