Bruno from Sales is convinced that this capability would create a new revenue stream that could significantly offset operating expenses. He recommends savings that grow each year: 5-year project life, a 12% discount rate, and a 6% annual savings growth in years 2 through 5. In other words, instead of assuming savings stay flat, assume that year 2 will be 106% of year 1, year 3 will be 106% of year 2, and so on. Bruno feels that the stated terminal value of $80,000 is reasonable and uses it in his calculations