Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car 40 years ago for $8,000. Cybil is either going to sell the car for $10,000 or have it restored and then sell it for $22,000. The restoration will cost $9,000. Cybil would be financially better off by:
A) $3,000 to have the vehicle restored
B) $6,000 to have the vehicle restored
C) $9,000 to have the vehicle restored
D) $11,000 to have the vehicle restored

Question

Quizplus · Accepted Answer

If Cybil sells the car as is, she would make $10,000. If she restores it for $9,000 and then sells it for $22,000, she spends $9,000 to make a total of $22,000, resulting in a net gain of $13,000 from the restoration. The difference between selling as is ($10,000) and the net gain from restoration ($13,000) is $3,000, making restoration the financially better option by $3,000.

Cybil Baunt Just Inherited a 1958 Chevy Impala from Her