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Business, 06.05.2021 22:50 savannahvargas512

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 $42,500. This equipment will have a useful life of 3 years, after which it will be sold for $2,900. The employee who creates the ads will be paid $57,000 per year. In addition, each ad will have an average cost of $14. Alternatively, the company can outsource 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 options to just break even

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