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please answer and show work please Norfolk Savings Bank is considering the establistument of a new branch office at the corner of 49th Street and
please answer and show work please
Norfolk Savings Bank is considering the establistument of a new branch office at the corner of 49th Street and Hampton Boulovard. The savings association's economics department projects annual operating revenues of $1.6 million from fee income generated by service sales and annual branch operating expenses of $800,000. The cost of procuring the property is $1.75 million and branch construction wili total an estimated $2.75 million; the facility is expected to last 20 years. If the savings bank has a minimum acceptable rate of refurn on its invested capital of 15 percent, will Norfolk Savings likely proceed with this branch office project? For the toolbar, press ALT+F10(PC) or ALT+FN+F10 (Mac) Step by Step Solution
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