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Required information (The following information applies to the questions displayed below] 2 of 2 The management of Niagara National Bank is considering an investment in
Required information (The following information applies to the questions displayed below] 2 of 2 The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $148,050 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $31,500 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 factor(s) from the tables provided.) 2. Compute the net present value of the proposed investment assuming an after-tax hurdle rate of (a) 10 percent, (6) 12 percent, andia 14 percent. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Net Present Value (a) 10 percent (b) 12 percent (c) 14 percent
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