The management of Niagra National Bank is considering an investment in automatic teller machines. The machines would cost $134,400 and have a useful life of seven years. The banks controller has estimated that the automatic teller machines will save the bank $28,000 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.)

Future Value and Present Value Tables Table 1 Future Value of $1.0011+ Period 45 1414 4. 2# 4 40 24 1. 4f4 4 .? 74 974 3 1.44) 1. 4 1.7| 13 3 251 s 34# atOE 347 33 2CH 42 13774 2 3 / 4 24 #jt . 7 3 f6443743 324 .74440 0 17.40 23 9% 84] 3 .pajnft ; S. + 41 fl616F1 1E146gbf W 40 Period Table II Future Value of a series of 31.00 Cash Flows Ordinary Amu + = E%B 1342 4 ) . JPG 2[a] 1 3.1 3142f 3310837 247474. 04.[444.77 47, 7y4 744E E: B49009 10/ 1216 0Fr jfhE37 114# 123@ 1833 jE4 4+ =Jf } 13 70/ 144/ 15. B /54 4 3 / br 14940 110 E L H/ 1154 /2/ n: 4 53 htm 1]#/ 447 4 1 224 [ H24 4577032 237.5g/ . 152 ] [24 ] .16 31.// 3 9240 27 4 57.276 7.7E + [EIA 9 reg1: ca // A 34fE4 4) fc157? c1f4 577e7434 10) 13431/ Table III Present of $100 [1 + ) * 34u f a7774374EFF 7? fit ? 574 3) 34.74.75172 [44 & qg g 4@ 40047744 iJA / /5 F E % /v/ 41/ E/ ? / / 2 0 3.747&E14607.4944374204424EptgA 1 2,707444t7039; g2707 9] . E3443@4 43429492.& 191 73474) + F4043E19Ef#33] 157 |31fr 1 2004jt 209314.1441#c48? 400?t 4436?? 03|/ gpr++ regta [g 1| HS/ 5374 36) 27 W a ? 1? | /9 / t 5 / / 4 24W2249320/f443/420gg643] 1 #4 Afti A w & 1481 ) [a] [utfF %E040 @33fc7 1p44 40 gs pp . 1 2 0 .cg? 04 . 03 ] [ 43 44731294.841ce [ry6c8404@ g02 H0 4%jijE14/A Int/IEWy90107f6fry 3 474cgg / g 02 . 04 ccg @ domDA = *# 4 fjft %E (Fr @fifrit- Table IV Present Value of Series of $1.00 Cash Flows eri4x6 ] 14162082224282a] 0+ 340 T+ are (0 Fet] 0 0 0 0Ft 04: 0 A# 0F] 07A 0.534 0.7 16 1 .1 1 S g ei@ 241474 ( 42 43 4 A** 3.0 3.4EE 238 3.4 3 [C3294427* 279 2 | 244 2.44 22 23 244 24 A_ 4E? |334 127 2 faE 24} 17, 1:|:17 gt Af 174E 2Fap9 A EP 234 242 42 43 Fgggag # r 3 2#| sg 23 R? A# 41 45 4Fai 4] ] fat 3 FE },41 124 21et A#3 ] 19 %7 .747 32; 494E4344403E