Quantifying intangible benefits in capital budgeting Suppose that you work for a bank and are proposing a system that customers can access from their home computers to do their banking. Only about one-half of the estimated cost of this system can be recovered by decreased clerical time required in the banks. How- ever, you believe that the balance of the cost will be more than made up by im- proved customer service that will attract more customers. How would you handle this situation in a capital budgeting exercise?

(LO 1)