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 $33,000 per year in labor. The new system will cost about $40,000 to build and test prior to operation. It is expected that operating costs, including income taxes, will be about $8,000 per year. The system will have a five-year useful life. The expected net salvage value of the system is estimated to be $2,000. (a) Identify the cash inflows over the life of the project. Fill in the table below. (Round to the nearest dollar.) Year Cash Inflows 0 $0 $ 33000 $ 33000 A WN $ 33000 $ 3300 35000 (b) Identify the cash outflows over the life of the project. Fill in the table below with absolute values of the cash outflows. (Round to the nearest dollar.) Year Cash Outflows o $ 40000 $ 8000 $ 8000 $ 8000 CI A W N $ 8000 $ 8000 (c) Determine the net cash flows over the life of the project. Fill in the table below. (Round to the nearest dollar.) Year Net Cash Flows 0 UI AWNLarson Manufacturing is considering purchasing a new injection-molding machine for $330,000 to expand its production capacity. It will cost an additional $25,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $91,000 per year. The machine will be used for six years, with an expected salvage value of $80,000. At an interest rate of 10%, would the purchase of the injection-molding machine be justified? Click the icon to view the interest factors for discrete compounding when i = 10% per year. The present worth of the project is $ . (Round to the nearest dollar.)FootballComm LLC is a manufacturer anufacturer of devices for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline headset system. Currently, the company purchases all of the headsets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall headset quality. To correct the problem, the company is considering producing their own headsets in-house. The company estimates that the transition will take place over 12 months. The system is expected to have an eight-year service life and produce savings and expenditures given in the table below. If the firm's MARR is 15%, use the NPW method to calculate the economic worth of producing the headsets in house. Click the icon to view the table for the savings and expenditures of the system. Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. The economic worth of producing the headsets in house is $ | thousand. (Round to the nearest whole number.)If a project costs $50,000 and is expected to return $10,000 annually, how long does it take to recover the initial investment? What would be the discounted payback period at i= 14%? Assume that the cash flows occur continuously throughout the year. The payback period is 5 years. (Round to one decimal place.) The discounted payback period at i= 14% would be |years. (Round to one decimal place.)
