31. (NPV) Seattle Fish Processing Company is considering the installation of an automated product handling system. The initial cost of such a system would be

$400,000. This system would generate labor cost savings over its 10-year life as follows:

Annual Labor Years Cost Savings 1–2 $70,000 3–5 85,000 6–8 86,400 9–10 62,000 The system will have no salvage at the end of its 10-year life, and the company uses a discount rate of 12 percent. What is the pretax net present value of this potential investment?