A New Computer System Is Expected to Cost $40 Million

question 76

Multiple Choice

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 12 percent?

• A)Yes,because the net present value of the project is $3,257,314.
• B)No,because the net present value of the project is -$3,257,314.
• C)Yes,because the net present value of the project is $20 million.
• D)No,because the net present value of the project is -$20 million.

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Definitions:

Sexual Reproduction

A biological process resulting in the creation of new organisms through the combination of genetic materials from two parents.

Genetic Traits

Characteristics that are influenced by genes inherited from one's parents, including physical appearance, behavior, and risk for certain diseases.

Tissue Differentiation

The process by which unspecialized cells develop into their mature form and function.

Crossing Over

The exchange of genetic material between homologous chromosomes during meiosis, leading to genetic diversity.