Your vice president of Management Information Systems informs you that she has researched the possibility of automating your organization's order-entry system. She has projected that the new system will reduce labor costs by $35,000 each year over the next five years. The purchase price (including installation and testing) of the new system is $125,000. What is the net present value of this investment if the discount rate is 10% per year?

Discounted Cash Flows and NPV
Year	Inflows	Outflows	Net flow	Discount Factor	NPV
0		125,000	(_______)	1.000	(_______)
1	35,000		35,000	_________	_________
2	_______		_________	_________	_________
3	_______		_________	_________	_________
4	_______		_________	_________	_________
5	_______		_________	_________	_________
Total	$_________