### Automated Payroll System Cash Inflow Analysis**Introduction:**Camptown Togs, Inc., a children's clothing manufacturer, has historically found payroll processing to be a costly endeavor due to its reliance on clerical work. To address this, the company decided to automate the process using a scanner-based system designed to read piece-goods coupons. This new system leverages existing personal computers and promises significant savings in labor costs.**Automated System Overview:**- **System Cost:** $22,000 (construction and testing pre-operation)- **Operating Costs:** Approximately $8,000 per year (including income taxes)- **Labor Savings:** $50,000 per year- **System Lifespan:** 5 years- **Salvage Value:** $5,000**Task:**(a) Identify the cash inflows over the life of the project. Fill in the table below. (Round to the nearest dollar.)**Cash Inflows Table**| **Year** | **Cash Inflows** ||----------|------------------|| 0 | $ || 1 | $ || 2 | $ || 3 | $ || 4 | $ || 5 | $ |### Graphical Explanation (If any)In this context, there are no graphical elements such as graphs or diagrams provided in the image. The focus is solely on calculating and identifying the cash inflows for each year of the project.This information will aid in analyzing the financial viability and benefit of the new automated payroll processing system relative to its costs and projected savings.

Cash outflow year 0 = Initial cost of project Cash flow year 1-4 = Annual saving - Annual operating…

Answered: Camptown Togs, Inc., a children's…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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