The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $163,300 and have a useful life of seven years. The banks controller has estimated that the automatic teller machines will save the bank $35,500 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, \\( (b) 12 \\) percent, and \\( (c) \\) 14 percent. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Future Value of a Series of \\( \\$ 1.00 \\) Cash Flows (Ordinary Annuity) \\( \\underline{(1+r)^{n}-1} \\) Drncont V/al\u0131n of \\( \\$ 1 \\cap n \\ldots \\) \\( \\frac{1}{r}\\left(1-\\frac{1}{\\left(1, m_{n}\ ight)}\ ight) \\) Future Value of \\( \\$ 1.00(1+r)^{n} \\) \\begin{tabular}{rrrrrrrr} Period & \mathbf4 & \mathbf6 & \mathbf8 & \mathbf10 & \mathbf12 & \mathbf14 & \\( \\mathbf{2 0 \\%} \\) \\\\ 1 & 1.040 & 1.060 & 1.080 & 1.100 & 1.120 & 1.140 & 1.200 \\\\ 2 & 1.082 & 1.124 & 1.166 & 1.210 & 1.254 & 1.300 & 1.440 \\\\ 3 & 1.125 & 1.191 & 1.260 & 1.331 & 1.405 & 1.482 & 1.728 \\\\ 4 & 1.170 & 1.263 & 1.361 & 1.464 & 1.574 & 1.689 & 2.074 \\\\ 5 & 1.217 & 1.338 & 1.469 & 1.611 & 1.762 & 1.925 & 2.488 \\\\ \\hline 6 & 1.265 & 1.419 & 1.587 & 1.772 & 1.974 & 2.195 & 2.986 \\\\ \\hline 7 & 1.316 & 1.504 & 1.714 & 1.949 & 2.211 & 2.502 & 3.583 \\\\ \\hline 8 & 1.369 & 1.594 & 1.851 & 2.144 & 2.476 & 2.853 & 4.300 \\\\ \\hline 9 & 1.423 & 1.690 & 1.999 & 2.359 & 2.773 & 3.252 & 5.160 \\\\ \\hline 10 & 1.480 & 1.791 & 2.159 & 2.594 & 3.106 & 3.707 & 6.192 \\\\ \\hline 11 & 1.540 & 1.898 & 2.332 & 2.853 & 3.479 & 4.226 & 7.430 \\\\ \\hline 12 & 1.601 & 2.012 & 2.518 & 3.139 & 3.896 & 4.818 & 8.916 \\\\ \\hline 13 & 1.665 & 2.133 & 2.720 & 3.452 & 4.364 & 5.492 & 10.699 \\\\ \\hline 14 & 1.732 & 2.261 & 2.937 & 3.798 & 4.887 & 6.261 & 12.839 \\\\ \\hline 15 & 1.801 & 2.397 & 3.172 & 4.177 & 5.474 & 7.138 & 15.407 \\\\ \\hline 20 & 2.191 & 3.207 & 4.661 & 6.728 & 9.646 & 13.743 & 38.338 \\\\ \\hline 30 & 3.243 & 5.744 & 10.063 & 17.450 & 29.960 & 50.950 & 237.380 \\\\ \\hline 40 & 4.801 & 10.286 & 21.725 & 45.260 & 93.051 & 188.880 & 1.469 .800 \\end{tabular}