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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 pointofsale technology. He spent $ on his current pointofsale system five years ago. The new pointofsale technology will cost $ 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 pointofsale technology when performing his capital budgeting analysis to determine whether or not to purchase the new pointofsale technology?
He should include the cost of the current pointofsale system as part of the cost of the new pointofsale system.
He should include half of the cost of the current pointofsale system when evaluating the cost of the new pointofsale system.
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