(Evaluate different ways of measuring the value of a vintage automobile, LO 4) Otto Collector owns a vintage 1925 Ford automobile. You obtain the following information about the car:

Required:
Explain how each of the measures of the “value” of Otto’s car could be used by a decision maker. What decision would the person be making? How would the information be useful?

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a. What Otto paid for the car in 1983 $29,000 b. Selling price of a similar car one year ago $80,000 c. Price offered (and turned down) by Otto for his car last month $95,000 d. What the car sold for new in 1925 $800