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Required information Exercise 1 6 - 3 5 Payback Period; Even Cash Flows ( Section 3 ) ( LO 1 6 - 1 , 1
Required information Exercise Payback Period; Even Cash Flows Section LO The following information applies to the questions displayed below. The management of Niagra National Bank is considering an investment in automatic teller machines. The machines would cost $ and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $ after taxes during each year of their life including the depreciation tax shield The machines will have no salvage value. Use Appendix A for your reference. Use appropriate factors from the tables provided. Exercise Part Compute the net present value of the proposed investment assuming an aftertax hurdle rate of: a percent, b percent, and c percent. Negative amounts should be indicated by a minus sign. Answer is complete but not entirely correct. Net Present Value a percent $ b percent $ C $ percent
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