Question: First National Bank of Conway is considering installing two ATMs
First National Bank of Conway is considering installing two ATMs in its Southside branch. The new machines are expected to cost $37,000 apiece. Installation costs will amount to about $15,000 per machine. Each machine has a projected useful life of 10 years. Due to rapid growth in the Southside district, these two machines are expected to handle 50,000 cash transactions per year. On average, each cash transaction is expected to save 30 cents in teller expenses. If First National has a 10 percent cost of capital, should the bank proceed with this investment project?
Relevant QuestionsFirst State Security Bank is planning to set up its own Web page to advertise its location and services on the Internet and to offer customers selected service options, such as paying recurring households bills, verifying ...Suppose that a bank holds cash in its vault of $1.4 million, short-term government securities of $12.4 million, privately issued money market instruments of $5.2 million, deposits at the Federal Reserve banks of $20.1 ...What are the key features or characteristics of the financial statements of banks and similar financial firms? What are the consequences of these statement features for managers of financial-service providers and for the ...The Sea Level Bank has Gross Loans of $800 million with an ALL account of $45 million. Two years ago the bank made a loan for $12 million to finance the Sunset Hotel. Two million dollars in principal was repaid before the ...Why do the financial statements issued by banks and by nonbank financial-service providers look increasingly similar today? Which nonbank financial firms have balance sheets and income statements that closely resemble those ...
Post your question