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The management of Niagra National Bank is considering an investment in automatic teller machines. The machines would cost $163,300 and have a useful life of
The management of Niagra 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 bank's 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.) Cequired: 1. Compute the payback period for the proposed investment. (Round your answer to 1 decimal place.) Payback period years # 4 Future Value and Present Value Tables & # #a a% g a44 # W E hl= w #n *E n c| # | 8 # # % *** R # 4443
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