The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on his current point-of-sale sy
stem five years ago. The new point-of-sale technology will cost $25,000, and will dramatically improve the speed at which his counter staff will be able to take orders, and reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing the capital budgeting analysis to determine whether or not to purchase the new point-of-sale technology? a. He should ignore the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system. b. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system.
1 answer:
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Answer:
Bob must use $4,000 newspaper ads in two numbers
Explanation:
As given in the question -
Total number of people affected by $5,000 TV ad
Total number of people affected by two $5,000 TV ad
Total number of people affected by $5,000 TV ad
Total number of people affected by two $5,000 TV ad
Hence, more number of people are affected by two news paper adds of $4,000