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

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Definitions:

Biological Molecules

Biological molecules are the essential substances that are the building blocks of living organisms, including proteins, nucleic acids, carbohydrates, and lipids.

Stabilizes

Refers to making something more steady or firmly fixed in place, or making a chemical compound resistant to change.

Buffer

A solution that resists changes in pH when acid or alkali is added, mainly composed of a weak acid and its conjugate base.

Chemical Equation

A symbolic representation of a chemical reaction, showing the reactants, products, and, in some cases, the direction of the reaction.