=+6. A new inventory management system for ABC Company could be developed at a cost of $260,000. The estimated net operating costs and estimated net benefits over six years of operation would be:

Year Estimated Net Operating Costs Estimated Net Benefi ts 0 $260,000 $0 1 7,000 42,000 2 9,400 78,000 3 11,000 82,000 4 14,000 115,000 5 15,000 120,000 6 25,000 140,000