First National Bank of Conway is considering installing two ATMs in its Southside branch. The new machines are expected to cost $31000 apiece. Installation costs will amount to about $14000 per machine. Each machine has a projected useful life of 9 years. Due to rapid growth in the Southside district, these two machines (combined) are expected to handle 51000 cash transactions per year. On average, each cash transaction is expected to save $0.21 in teller expenses. If First National has a 0.12 cost of capital, what is the NPV of this project?
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