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. The machine is expected to last for 10 years.
| 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% |
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Pandemonium The Great Indian Banking Tragedy
Authors: Tamal Bandyopadhyay
1st Edition
819464335X, 8194643368, 9788194643364
