Priya has spent $50,000 restoring her car and she plans to sell it for $200,000. However, in order for the car to be worth $200,000, she needs to spend another $60,000 to replace the engine. Without replacing the engine, she could sell the car at $110,000. Should she replace the engine before selling? Why, or why not? Explain your answer with reference to a principle of economics.

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Answer In this scenario Priya should consider replacing the engine before selling the car By investi... View the full answer