The Boyer Bank Wants to Add a New ATM Machine

question 30

Multiple Choice

The Boyer Bank wants to add a new ATM machine in a busy mall.It knows the new machine will cost $60,000 and another $30,000 is required to install it in the mall.It expects to save $0.27 per transaction and generate 100,000 transactions per year.Also,it expects the new machine to last 8 years.If it needs to earn a 12% return,what is the NPV of this project? (Round your answer to the nearest $1,000)

• A)$126,000
• B)$44,000
• C)$134,000
• D)$27,000
• E)$117,000

---

Definitions:

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Stimulus Attributes

Characteristics or features of a stimulus that can influence an individual's response or perception.

Lower-Order

Pertaining to basic or fundamental processes that do not involve complex cognitive operations.

Sky

The expanse of air over the Earth, visible from the ground, characterized by blue color during the day and darkness or stars at night.