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Stan Moneymaker presently owns a 10-year-old automobile with low mileage(78,000 miles).The NADA blue book value of the car is $2,500. Unfortunately, the car's transmission just
Stan Moneymaker presently owns a 10-year-old automobile with low mileage(78,000 miles).The NADA "blue book" value of the car is $2,500. Unfortunately, the car's transmission just failed, and Stan decided to spend$1,500 to have it repaired.Now,six months later, Stan has decided to sell the car, and he reasons that his asking price should be $2,500 + $1,500 = $4,000. Comment on the wisdom of Stan's logic. If he receives an offer for $3,000, should he accept it? Explain your reasoning. (2.1)
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