The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $131,100 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $28,500 after taxes during each year of their life (including the depreciation tax shield). The machines will have no salvage value. Use AppendixA for your reference. (Use oppropriate factor(s) from the tables provided.) equired: Compute the payback period for the proposed investment. (Round your answer to 1 decimal ploce.) Answer is complete but not entirely correct. The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $131,100 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $28,500 after taxes during each year of their life (including the depreciation tax shield). The machines will have no salvage value Use Anpendix. 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 ( d ) 4 percent. (Do not round intermediate colculations. Negative omounts should be indicated by a minus sign.) 8) Answer is complete but not entirely correct. The management of Niagara National Bank is considering an investment in automatic teller machines. The machines would cost $131,100 and have a useful life of seven years. The bank's controller has estimated that the automatic teller machines will save the bank $28,500 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 oppropriote factor(s) from the tables provided.) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to oduce 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 paybock method The payback method is preferable to the netpresent value method. The payback period criterion falis to account for the time value of money. If management uses the paybsck method, the inveatment will be opproved only if the required payback perfod meets or exceeds the years calculoted The cut-of volue for the poyback petiod is very much dependent on the bank's hurdie rote: The cut-.of volue for the poyback period hos nothing to do with the bonk' hurde rofe: Future Value and Present Value Tables Table I \begin{tabular}{ccccccccc} \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 \\ \hline \end{tabular} Table II (1+)n1 \begin{tabular}{lllllllll} \hline 11 & 13.486 & 14.972 & 16.646 & 18.531 & 20.655 & 23.045 & 32.150 \\ 12 & 15.026 & 16.870 & 18.977 & 21.385 & 24.133 & 27.271 & 39.580 \\ 13 & 16.627 & 18.882 & 21.495 & 24.523 & 28.029 & 32.089 & 48.497 \\ 14 & 18.292 & 21.015 & 24.215 & 27.976 & 32.393 & 37.581 & 59.196 \\ 15 & 20.024 & 23.276 & 27.152 & 31.773 & 37.280 & 43.342 & 72.035 \\ \hline 20 & 29.778 & 36.778 & 45.762 & 57.276 & 75.052 & 91.025 & 186.690 \\ 30 & 56.085 & 79.058 & 113.283 & 164.496 & 241.330 & 356.790 & 1.181.900 \\ 40 & 95.026 & 154.762 & 259.057 & 442.597 & 767.090 & 1.342.000 & 7.343.900 \\ \hline \end{tabular} Present Value of $1.00(1+r)n1 r1(1(1+r)1)
