A bank can purchase an ATM (automated teller machine) for $110,000 that has an estimated life of 6 years. Maintenance over that period will begin at...

A bank can purchase an ATM (automated teller machine) for $110,000 that has an estimated life of 6 years. Maintenance over that period will begin at $2,500 annually and increase at a 10% rate. If the ATM is purchased the bank will not be required to hire one additional (human) teller. Including fringe benefits, the teller costs $18,000 per year, and this amount is expected to increase 5% annually. If the bank's cost of capital is 10%, which alternative should be selected? Please show detail on how this was calculated.