Chester National Bank Is Considering Adding a New Branch Bank

question 109

Multiple Choice

Chester National Bank is considering adding a new branch bank.It knows that it will cost $2.5 million to build the branch and it believes that it will generate $214,526 per year for the next 25 years.Chester National Bank requires a return of 10% on all new projects it undertakes.What is this project's net present value? (Round to the nearest $100)

• A)-$552,700
• B)-$3,052,700
• C)$1,947,300
• D)$2,863,200
• E)$5,363,200

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