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First National Bank of Conway is considering installing two ATMs in its Southside branch. The new machines are expected to cost $40000 apiece. Installation costs
First National Bank of Conway is considering installing two ATMs in its Southside branch. The new machines are expected to cost $40000 apiece. Installation costs will amount to about $19000 per machine. Each machine has a projected useful life of 10 years. Due to rapid growth in the Southside district, these two machines (combined) are expected to handle 44000 cash transactions per year. On average, each cash transaction is expected to save $0.20 in teller expenses. If First National has a 0.12 cost of capital, what is the NPV of this project?
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