Required Information {The following information applies to the questions displayed below) The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $141.000 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $30,000 after taxes during each year of their life (including the depreciation tax shield). The machines will have no salvage value Use Arpendix A for your reference (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the payback period for the proposed investment (Round your answer to 1 decimal place.) Payback period yen Required Information (The following information applies to the questions displayed below) The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $141,000 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $30,000 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 hurale rate of (0) 10 percent. 12 percent and (a 14 percent (Do not round Intermediate calculations. Negative amounts should be indicated by a minus sign.) Net Present Value ances (5)10 percent (0) 12 percent ( 14 percent Required Information [The following information applies to the questions displayed below! The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $141,000 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $30.000 after taxes during each year of their life (including the depreciation tax shield). The machines will have no salvage value. Use Arrendix A for your reference. (Use appropriate factor(s) from the tables provided.) 3. Which of the following statements are true? [You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) The net-present-value method is preferable to the paypack method The payback method is preferable to the nat-present-dua method The payback period criterion falls to account for the time va ve of money, management uses the paypack method, na investment will be approved only if the requirea payback period meats or exceeds the years calculated The cut-off value for the payback period is very much dependent on the bank's harder to L. The cur of blue for the payback period nos nothing to do with the bank's hurdle tate
