The consulting firm your boss hired has said that you should invest $1 million into a new personnel management system that will reduce your overhead costs by $200,000 per year for the first three years, then $400,000 the next year, and $500,000 in the final year. If your firm has a required return of 15%, should you purchase the new system?

• A. Yes

• B. No

• C. Not enough information to answer