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Business, 19.07.2021 20:20 siicklmods4295

A Yellow Pages directory company must decide whether it should compose the ads for its clients inhouse or outsource them to a production company. To develop the ads inhouse, the company will have to purchase computers, printers, and other peripherals at a cost of $12,000. The equipment will have a useful life of 3 years, after which it will be sold for $2000. The employee who creates the ads will be paid $55,000 per year. In addition, each ad will have an average cost of $5. Alternatively, the company can outsource ad development at a flat fee of $21 per ad. At an interest rate of 10% per year, how many ads must the company sell each year for the alternatives to break even

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