(NPV) Miami Fish Processing Company is considering the installation of an automated product handling system. The initial cost of such a system would be $200,000. This system would generate labor cost savings over its 10-year life as follows:

The system will have no salvage at the end of its 10-year life, and the company uses a discount rate of 12 percent. What is the pretax net present value of this potential investment?

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ANNUAL LABOR YEARS COST SAVINGS 1-2 3-5 $35,000 42,500 6-8 43,200 9-10 31,000