The engineering manager of Company A proposes to install an automated bar-code scanner costing $4,000. He estimates that he can save about 100 hours of labor time per month, as products can now be scanned much faster. He reasons that at the wage rate of $15 per hour, the benefit for using the automated bar-code scanner is $1,500 per month, and the scanner be paid back in 2.67 months.

Question: As the president of the Company A, do you agree or disagree with the way he carries out his benefit-cost analysis? Why or why not?