mike has spent $500 purchasing and overhauling an old fishing boat, which he expects to sell for $800 once the repairs are complete. He discovers that he needs an additional repair , which will cost $400, to complete the repairs. He can sell the boat as is now for $300. What should he do?
2007-03-18 09:25:27 · 7 answers · asked by doha 1 in Social Science ➔ Economics
Spend the extra $400 to fix the boat. If he then sells it for $800, he would have spent a total of $900 on it, and lost only $100. If he doesn't fix the boat and sells it as is for $300, he will have lost $200.
2007-03-18 09:29:13 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Repair the boat-spend the $400 with the$500 initial investment he now has $900 in a boat that will fetch $800-net loss $100
if he sells now for 300 he incursa $200 loss out of his original 500.
D
2007-03-18 16:32:42 · answer #2 · answered by dugal45 3 · 0⤊ 0⤋
Do the repairs and he will only lose $100. If he sells it now, he will lose $200.
2007-03-18 16:28:34 · answer #3 · answered by Santa Barbara 7 · 1⤊ 0⤋
Give up, keep it and go fishing. A bad day fishing beats the best day working
2007-03-18 16:29:01 · answer #4 · answered by fra_bob 4 · 0⤊ 0⤋
He should go out and get a real job like everybody else.
2007-03-18 16:27:49 · answer #5 · answered by Anonymous · 0⤊ 1⤋
GET A DAM JOB
2007-03-18 16:28:34 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Think about it and do what you can
2007-03-18 16:30:23 · answer #7 · answered by j.wisdom 6 · 0⤊ 0⤋