Question
Your bank is considering a new check clearing machine to automate the clearing house function. The cost of the new machine and installation is $250000.
Your bank is considering a new check clearing machine to automate the clearing house function. The cost of the new machine and installation is $250000.
| Check Clearing Machine Installed | 1 | ||
| Initial cost for each ATM | $235,000.00 | ||
| Installation cost for each ATM | $15,000.00 | ||
| # of transactions per year | 100,000 | ||
| Increase in transactions per year | 10.00% | ||
| Savings per transaction | $0.50 | ||
| Cost of capital | 12.00% |
What the Net Present Value of this investment, Round up to next Whole $.
my answer was
| 2250000 |
it was incorrect
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Performance Measurement In Finance
Authors: John Knight, Stephen Satchell, Nathalie Farah
1st Edition
0750650265, 978-0750650267
