Rate of

Cost of
Marginal Difference
Expected volume interest
raising new Marginal Marginal revenue between
of new deposit
offered
deposit
cost
cost rate rate
MCR, MR
$
10
5% $
0.5000 $ 0.5000
5.000%
7%
2.00%
$
15
5.25% $
0.7875 $ 0.2875
5.750%
7%
1.25%
$
20
6% $
1.1000 $ 0.3125
6.250%
7%
0.75%
$
26
5.75% $
1.4950 $ 0.3950
6.583%
7%
0.42%
$
28
6% $
1.6800 $ 0.1850
9.250%
7%
-2.25%

1.250%
0

PV

1
2500

$10,212.61
365
3397.3
0.0001369863

$1,209,443.63
$62,005.15

$60,472.18

2
3000

3
5000

Total
profit
after cost
$ 0.2000
$ 0.2625
$ 0.3000
$ 0.3250
$ 0.2800

0
8000

1
-4400

IRR
IRR
IRR

14.807% NPV
10% NPV
20% NPV

3
-1900
$
$
$

14%
1
2
310000
430000
890000
330000
19.83% NPV

0
-750000
-1350000
IRR
IRR
NPV

2
-2700

15.776% npv
35,611.23

(0.00)
(683.42)
635.42

3
330000
520000
$0.00
$

0.00001

4
-1500

0
-2100000
IRR

1
1200000

2
760000

17.364% NPV

3
850000
$

0.00