Chase Bank of Commerce just purchased a new executive jet for its president. The jet is not currently underutilized, and management is considering allowing other officers to use it: This move would save $45,000 per year in real terms in airline bills. Offsetting this benefit is the notion that the jet will have to be replaced a year sooner than originally planned. If the jet cost $1,350,000 and was originally expected to last six years, should management allow other officers to use the jet? The real opportunity cost of is 10%. No, because the present value of saving, $195,986.73, is less than the present value of cost, $221,126.60. Yes, because the present value of saving, $195,986.73, is greater than the present value of cost, $174,969.96. No, because the present value of saving, $170,585.40, is less than the present value of cost, $192,466.96. No, because the present value of saving, $170,585.40 is less than the present value of cost, $174.969.96