Albilad Bank decides to install 2 ATMs near to its one of the full services branches in
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Albilad Bank decides to install 2 ATMs near to its one of the full services branches in Dammam. Each ATM costs 35000 SAR to the bank. ATM Installation cost is 16000 SAR for each machine. Each ATM has a projected life of 10 years. Both ATMs are expected to handle 50,000 cash transaction collectively and, on an average, bank can save 0.40 SAR on each transection in teller expenses. If Albilad bank has a 12% cost of capital, should the bank go ahead with this Investment in 2 ATMs.
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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