Your firm has the option of making an investment in new software that will cost $130,000 today and is estimated to provide the savings shown in the following table over its 5-year life:
Year Savings estimate
1 ........... $35,000
2 ........... 50,000
3 ........... 45,000
4 ........... 25,000
5 ........... 15,000
Should the firm make this investment if it requires a minimum annual return of 9% on all investments?