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Camptown Togs, Inc., a children's clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk. The number
Camptown Togs, Inc., a children's clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk. The number of piece-goods coupons received by each employee is collected and the types of tasks performed by each employee are calculated. Not long ago, an industrial engineer designed a system that partially automates the process by means of a scanner that reads the piece-goods coupons. Management is enthusiastic about this system, because it utilizes some personal computer systems that were purchased recently. It is expected that this new automated system will save $50,000 per year in labor. The new system will cost about $29,000 to build and test prior to operation. It is expected that operating costs, including income taxes, will be about $6,000 per year. The system will have a five-year useful life. The expected net salvage value of the system is estimated to be $2,500. (a) Identify the cash inflows over the life of the project. Fill in the table below. (Round to the nearest dollar.) Year Cash Inflows _ _
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