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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.

image text in transcribed 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 $146,400 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $30,500 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.) . Compute the net present value of the proposed investment assuming an after-tax hurdle rate of (a) 10 percent, (b) 12 percent, and 4 percent. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.)

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