1.	A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued. The inventory cost is $72,000. The parts can be either (a) remachined at total additional costs of $28,000 and then sold for $33,500 or (b) sold as scrap for $3,500. Which action is more profitable? Show your calculations.
2.	A truck, costing $103,500 and uninsured, is wrecked its first day in use. It can be either (a) disposed of for $16,500 cash and replaced with a similar truck costing $102,000 or (b) rebuilt for $84,000, and thus be brand-new as far as operating characteristics and looks are concerned. Which action is less costly? Show your calculations.