Bill is restoring a car and has already spent $4,000 on the restoration. He expects to be able to sell the car for $6,200. Bill discovers that he needs to do an additional $2,400 of work to make the car worth $6,200 to potential buyers. He could also sell the car now, without completing the additional work, for $3,800. What should he do?
a. He should sell the car now for $3,800.
b. He should keep the car since it wouldn’t be rational to spend $6,400 restoring a car and then sell it for only $6,200. c. He should complete the additional work and sell the car for $6,200.
d. It does not matter if Bill sells the car now or completes the work and then sells it at the higher price because the outcome will be the same either way.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Bill is restoring a car and has already spent $4,000 on the restoration. He expects to be able to sell the car for $6,200. Bill discovers ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
DigDug Corporation had outstanding checks totaling $5,590 on its June bank reconciliation. In July, DigDug issued checks totaling $40,800. The July bank statement shows that $29,150 in checks cleared the bank in July.
Answers (1)
Why might a construction company build a high-rise building with steel alloy beams instead of pure iron beams?
Answers (1)
The cost, c, of a ham sandwich at a deli varies directly with the number of sandwiches, n. If c = $54 when n is 9, what is the cost of the sandwiches when n is 3? ...
Answers (1)
The following information was taken from Baxter Department Store's financial statements: Inventory on January 1 $ 100,000 Inventory on December 31 300,000 Net sales 2,000,000 Net purchases 700,000 What was Baxter's inventory turnover for the year
Answers (1)
Scenario One: Frank and Rachelle Facconne wish to invest in a no-risk savings account. They currently have $25,000 in an account bearing % annual interest, compounded continuously. The following options are available to them: a.
Answers (1)
New Questions in Business
Which of the following groups on the Insert tab contain the command to add WordArt to a publication? Illustrations Text Links Header & Footer
Answers (1)
Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. a.
Answers (1)
In the United States, you can own anything you want and decide what you want to do with it, as long as it does not violate the law. This describes the principle of
Answers (1)
High value-added per employee is associated with: a. capital intensive industries. b. labor intensive industries. c. the shoe industry in 1860. d. the use of unskilled labor.
Answers (1)
How were the earliest benefits of the industrial revolution distributed between Factory owners and workers?
Answers (1)