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There are two alternatives for a company to compose the ads. In the first alternative the company will have to purchase computers printers and other
There are two alternatives for a company to compose the ads. In the first alternative the company will have to purchase computers printers and other peripherals at a cost of $30,000. The equipment will have a useful life of 9 years after which it will be sold for $4000. The employee who creates the ads will be paid 565,000 per year. In addition, each ad will have an werage cost of $120 to prepare for delivery to the printer. Alternatively, the company can Outsource ad development at a fee of $400 per ad regardless of the quantity. The current interest rate is 13% per year. What is the brieven contand which alternative is economically better
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