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Unformatted text preview: P7-5 Keep-or-Buy Decision, Sunk Costs [LO 1,
Susan Crossing purchased a used Ford Focus
for $8,000. Since purchasing the car, she has
spent the following amounts on parts and
Unfortunately, the car needs a few major
repairs now; among other things, the brake
rotors and pads must be replaced, and the
radiator has sprung a leak. (A new radiator is
needed.) The repairs are estimated to cost
Susan has looked around at other used cars ...
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This note was uploaded on 06/21/2011 for the course MANAGERIAL MT425 taught by Professor Hodgson,k during the Spring '11 term at Kaplan University.
- Spring '11