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22 January, 05:26

Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car 40 years ago for $8,000. Cybil is either going to sell the car for $10,000 or have it restored and then sell it for $22,000. The restoration will cost $9,000. Cybil would be financially better off by:

a. $3,000 to have the vehicle restored

b. $6,000 to have the vehicle restored

c. $9,000 to have the vehicle restored

d. $11,000 to have the vehicle restored

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Answers (1)
  1. 22 January, 05:47
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    a. $3,000 to have the vehicle restored

    Explanation:

    The computation of the financially better off amount is shown below:

    = Sale value of the car after restored - restoration cost - sale value without any restoration cost

    = $22,000 - $9,000 - $10,000

    = $3,000

    We simply deduct the restoration cost and the sales value without considering the restoration cost in the restoration sales value

    All other information which is given is not relevant. Hence, ignored it
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