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Stan Buys a 1966 Mustang with the Intention of Repairing

question 79

Essay

Stan buys a 1966 Mustang with the intention of repairing, restoring and selling it.He anticipates that it will cost him $10 000 to purchase, repair and restore the car, and that he can sell the finished car for $13 000.When he has spent a total of $10 000 on the project, he discovers that he needs to replace the engine.It will cost Stan $4000 to replace the engine.He can sell the car without the new engine for $9000.What should he do?


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