A new computer system is expected to cost $40 million and generate annual savings of $12 million over the next five years Should the bank invest in this project if the discount rate is 18 percent Question 4 options Yes, because the net present value of the project is $2,476,000 No, because the net present value of the project is $2,476,000 Yes, because the net present value of the project is $24 8 million No, because the net present value of the project is $24 8 million

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Question: A new computer system is expected to cost $40 million and generate annual savings of $12 million over the next five years. Should the bank

A new computer system is expected to cost $40 million and generate annual savings of $12 million over the next five years. Should the bank invest in this project if the discount rate is 18 percent?

Question 4 options:

	Yes, because the net present value of the project is $2,476,000.
	No, because the net present value of the project is -$2,476,000.
	Yes, because the net present value of the project is $24.8 million.
	No, because the net present value of the project is -$24.8 million.

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