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A Year Ago, Elizabeth Purchased a New Computer for $1,400

Question 99

Multiple Choice

A year ago, Elizabeth purchased a new computer for $1,400, but now it needs $500 in repairs. She will get only $400 in additional value over the next year. What is Elizabeth's best course of action, and why it is the best?


A) She should not repair the computer because the benefit plus the cost of the repair are less than what she paid for the computer.
B) She should not repair the computer because her additional value is less than her additional cost.
C) She should repair the computer because the cost of repairing it is less than what she paid.
D) She should repair the computer because it still can give her additional value and she paid a lot of money to get the computer.

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