5. The management of Dewey, Cheatham & Howe, a private hospital is considering automating some back office functions. This would replace five personnel that currently cover three shifts per day, 365 days per year. Each person earns $35,000 per year. Company-paid benefits and overhead are 45% of wages. Money costs (use this as MARR) 8%. Combined federal and state taxes total 40%. Annual property taxes and maintenance are 2.5% and 4 % of the investment cost, respectively. Depreciation is 15-year straight-line (i.e. 1/15 * investment cost). Disregarding inflation, how large an investment in the automation project can be economically justified?

Use Excel to solve this problem.