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25 March, 21:27

Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed. After having spent $125, Zane realizes that he will need to spend an additional $200 on materials to complete the restoration. Alternatively, he can sell the weather vane without restoring it for $200. What should he do?

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  1. 25 March, 21:53
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    Zane should finish the restoration and sell the weather vane for 500

    Explanation:

    Opcion A = Finish the vane

    Opcion B = Sell the vane without restoring

    Opcion A Opcion B

    Expected Income 500 200

    Purchase of the vane - 125 - 125

    Additional Expend - 200 0

    Net Income 175 75
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