Planning to restore and sell the car

Assignment Help Microeconomics

Reference no: EM13174676

Rick buys a 1966 Mustang for $3,000, planning to restore and sell the car. He goes on to spend $9,000 restoring the car. At this point he can sell the car for $10,000. As an alternative, he can spend an additional $3,000 replacing the engine. With a new engine the car would sell for $13,000. Rick should

complete the repairs and sell the car for $13,000.
sell the car now for $10,000.
never try such an expensive project again.
be indifferent between (i) selling the car now and (ii) replacing the engine and then selling it.

Reference no: EM13174676

Questions Cloud

What was the new pressure inside the ball : A rigid ball that contained 25.0 liters of air at 22°C and 6.25 atm pressure was placed in an oven at a temperature of What was the new pressure inside the ball?

What mass of magnesium will react with a container of gas : Magnesium burns in oxygen gas to produce magnesium oxide. What mass of magnesium will react with a 0.25 L container of oxygen gas at 80oC and 770 mmHg?

What is the event-appraisal-emotion sequence : What is the event-appraisal-emotion sequence? How does it regulate ongoing expression? What types of criticism has the event-appraisal-emotion sequence received?

State the complex to the cis isomer : it changes the complex to the cis isomer. Any idea as to why

Planning to restore and sell the car : Rick buys a 1966 Mustang for $3,000, planning to restore and sell the car. He goes on to spend $9,000 restoring the car. At this point he can sell the car for $10,000. As an alternative, he can spend an additional $3,000 replacing the engine.

Fundamental to ancient societies : As farming became fundamental to ancient societies in Central America, it had a drastic impact on the population of these societies. Identify what you believe to be the three most important effects of farming, and explain your choices thoroughly.

State and list the different strengthening mechanisms : List the different strengthening mechanisms and identify the ones that would not apply to pure elemental materials

Examine who will be the winner and loser : Examine who the winner and loser would be - either the borrower or the lender in the given scenario. Provide support for your response.

Children to accept an impending divorce : Divorce is a common occurrence and it affects children in many ways. Identify three methods that parents can better prepare their child or children to accept an impending divorce.

User Account

All Pages