The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $136,300 and have a useful life of seven years. The banks controller has estimated that the automatic teller machines will save the bank $29,000 after taxes during each year of their life (including the depreciation tax shield). The machines will have no salvage value.

. Compute the net present value of the proposed investment assuming an after-tax hurdle rate of (a) 10 percent, (b) 12 percent, and (c) 14 percent.