313.9
9. You've recently completed a $300,000 marketing survey that indicates that there is solid potential for your internet business plan. You are thinking of starting a new internet working group within your company. You will transfer employees earning a total of $400,000 per year to the new group. You plan to fill the positions they leave vacant with new hires at approximately 80% of the cost of the older employees. New employees will require training that costs about $10,000. Ten percent of the costs of the present administration and operation of your headquarters is $40,000 and the salaries of this group represent 10% of your overall salary expenses. The new group will need $50,000 in new equipment, which will be depreciated over four years. Which of these costs are relevant to the decision of whether to go forward and why? (8)