Rick Buys a 1966 Mustang for $3,000,planning to Restore and Sell

question 57

Multiple Choice

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

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

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Definitions:

North Atlantic Treaty Organization

An intergovernmental military alliance between 30 North American and European countries.

1949

The year notable for several historical events, including the formation of NATO and the conclusion of the Chinese Civil War with the Communist Party of China taking control of Mainland China.

Formed

Established or created with a specific structure or intended purpose.

UN General Assembly

A principal organ of the United Nations, comprising all member states, it serves as a forum for deliberating international issues covered by the UN Charter.