A New Computer System Is Expected to Cost $40 Million

question 6

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.
• E)Yes, because the net present value of the project is $4,980,000.

Comprehend various strategies firms adopt to generate new-product ideas including crowdsourcing and its impact on innovation.

Recognize the importance of customer experience management (CEM) in designing and delivering products that meet consumer expectations.

Identify the different financing methods including crowdfunding for securing early-stage funding for new-product development.

Understand the principles of insider trading and its consequences.

---

Definitions:

Exaggeration

The act of making something more noticeable or prominent than it actually is, often by overstating or enlarging the facts.

Hormone Treatment

The use of hormones in medical therapy to treat or alleviate symptoms of conditions such as hormonal imbalances, menopause, or certain cancers.

Defective Gene

A gene that has a mutation or alteration, leading to a malfunctioning protein that can cause genetic disorders.

Stereotypes

Oversimplified, widely held beliefs or generalizations about the characteristics of specific groups of people.