Tariq Ltd is a business that owns a machine that cost £5,000 when it was bought new a year ago. Now the business finds that it has no further use for the machine. Enquiries reveal that it could be sold in its present state for £2,000, or it could be modified at a cost of £500 and sold for £3,000.
Assuming that the objective of the business is to make as much money as possible, what should it do, sell the machine modified or unmodified?