Exercise $13-26$Dan Dunkard purchased a previously owned, five$-$year$-$old all terrain vehicle $($ATV$)$ for $$7,500.$ Since purchasing the vehicle, he has spent the following amounts on parts and labour: Unfortunately, the four$-$wheel drive system rarely engages and makes it impossible to haul the heavy loads the machine was purchased to move. Apparently, the ATV needs a considerable amount of work to make it useable equipment. Dan estimates that the needed repairs include the following: In a visit to a dealership, Dan has found a one$-$year$-$old utility tractor in mint condition for $$8,500$ that is sure to be capable of performing the required work. Dan has advertised and found that he can sell the ATV for only $$5,950.$ If he buys the tractor, he will pay cash, but he would need to sell the ATV$\mathrm{.}1.$CONCEPTUAL CONNECTION In trying to decide whether to restore the ATV or to buy the tractor, Dan is distressed because he has already spent $$9,450$ on the ATV. The investment seems too much to give up$.$ How would you react to his concern?$2.$CONCEPTUAL CONNECTION Assuming that Dan would be equally happy with the ATV or the tractor, should he buy the tractor, or should he restore the ATV?