• The acquisition cost is $35,000 paid at the time of installation.

• It reduces the wait staff by one person: Figure $10 per hour, or 2020 hours per year + 18% benefits.
• Money costs are 7%
• The system may become obsolete in three years.

To calculate the cost savings and determine the payback period for the acquisition cost, wait staff reduction, and money costs, you need to follow these steps:

1. Calculate the cost savings from reduced wait staff:
- Determine the annual cost savings from reducing one person from the wait staff.
- Multiply the hourly wage ($10) by the number of hours worked per year (2020) to get the annual wage savings.
- Add 18% of the annual wage savings to account for benefits.
- Multiply the annual wage savings (including benefits) by three to account for three years.

2. Calculate the money costs:
- Determine the annual interest rate (7%) on the acquisition cost.
- Multiply the acquisition cost by the annual interest rate to get the annual interest expense.

3. Calculate the payback period:
- Divide the acquisition cost by the total annual savings (including wage savings and interest expense) to get the payback period.

Let's go through the calculations step by step.

1. Calculate the cost savings from reduced wait staff:
- Wage savings per year = $10/hour * 2020 hours = $20,200
- Benefit costs per year = 18% * $20,200 = $3,636
- Total annual savings from reduced wait staff = $20,200 + $3,636 = $23,836
- Total savings over three years = $23,836 * 3 = $71,508

2. Calculate the money costs:
- Annual interest expense = $35,000 * 7% = $2,450

3. Calculate the payback period:
- Payback period = $35,000 / ($71,508 + $2,450) = number of years

By plugging in the values, you can now calculate the payback period for the acquisition cost, wait staff reduction, and money costs.