A New Computer System Is Expected to Cost $40 Million

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 18 percent?

A) Yes,because the net present value of the project is $2,473,948.
B) No,because the net present value of the project is -$2,473,948.
C) Yes,because the net present value of the project is $24.8 million.
D) No,because the net present value of the project is -$24.8 million.