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What the net present value of this investment

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Question - Your bank is considering a new check clearing machine to automate the clearing house function. The cost of the new machine and installation is $250000.

Check Clearing Machine Installed 1

Initial cost for each ATM $235,000.00

Installation cost for each ATM $15,000.00

# of transactions per year 100,000

Increase in transactions per year 10.00%

Savings per transaction $0.50

Cost of capital 12.00%

Required - What the Net Present Value of this investment?

Reference no: EM133076332

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