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Business, 01.12.2021 01:00 whiteshawn0250
An on-line commercial directory service must decide between composing the ads for its clients in-house or paying a production company to compose them. To develop the ads in-house, the company will have to purchase computers, printers, and a database management system at an estimated cost of $43,500. This equipment will have a useful life of 3 years, after which it will be sold for $3,700. The employee who creates the ads will be paid $69,000 per year. In addition, each ad will have an average cost of $12. Alternatively, the company can outsource development at a flat fee of $21 per ad. At an interest rate of 9% per year, how many ads must the company sell each year for the options to just break even
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