Hank Allbright purchased a previously owned, two year old Ford Taurus for $8,900. Since he purchased the car, he has already invested the following amounts in the car: New stereo system New high performance tires Belts and hoses Total $1,200 $800 $400 $2,400 Unfortunately, the new stereo doesn't completely drown out the sounds of a grinding transmission. Hank's mechanic has estimated a new transmission, water pump, and other necessary repair work will cost $3,500. Hank found a Dodge Neon for sale for $9,400. He believes he can sell his Taurus as-is for $6,400. Hank has two options: 1. Repair and keep the Taurus or 2. Sell the Taurus as-is and buy the Neon What should Hank do? Give opinion.

Answer rating: 100% (QA)

Lower cost Repairing the Taurus would cost 3500 which is less than the price of the Dodge Neon Familiarity Hank is already familiar with the Taurus an... View the full answer