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The owner of Cafe Bakka is considering investing in new point - of - sale technology. He spent $ 1 0 , 0 0 0

The owner of Cafe Bakka is considering investing in new point-of-sale technology. He spent $10,000 on his current point-of-sale system five years ago. The new point-of-sale technology will cost $25,000, but it will dramatically improve the speed at which his counter staff will be able to take orders; it will also reduce the owners administrative work. How should the owner account for the cost of the current point-of-sale technology when performing his capital budgeting analysis to determine whether or not to purchase the new point-of-sale technology?
He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system.
He should include half of the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system.

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