9.1 lne milda hotel took delverv or a new computerized reservation svstem in Januarv the beginning of

its tinancia vear. The list orice of the whole svstem was $25.000: nowever. the note was able to

negotiate a price of $22,000 with the supplier. This did not include a fee of $2,00 to install and test the

system. A cash discount was also agreed with the supplier of 6 per cent (not including the installation

fee) should the business pay within ten days of receipt and installation. The hotel took advantage of this

discount. A maintenance agreement was entered into with a sister company of the supplier costing $800

and the extra insurance charge for the equipment was agreed with the hotel insurance company at

$200. An extra charge of $1.000 was agreed with the supplier to train staff on the new system.

You are required to calculate the capital cost or acquiring the new reservation system