Multiple Choice
John buys a 1948 Ford F47, which he plans to restore and sell. He anticipates that the cost of the truck and the repairs will be $10,000 and that he can sell it for $15,000. After he has spent $10,000, he discovers he needs to replace the engine, which will cost $4000. He can sell the truck without the new engine for $11,000. What should John do?
A) He should complete the repairs for $4000 and sell the truck for $15,000.
B) He should sell the truck now for $11,000.
C) He should keep the truck because selling it would be a loss.
D) He should be totally indifferent between finishing the project and selling the truck now.
Correct Answer:
Verified
Correct Answer:
Verified
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