Blue book value is 6500 if transmission works 5700 if

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Unformatted text preview: mission works, $5700 if it doesn’t B. Blue book value is $6000 if transmission works, $5500 if it doesn’t Answers: Ac4ve Learning 1 Cost of fixing transmission = $600 A. Blue book value is $6500 if transmission works, $5700 if it doesn’t Benefit of fixing the transmission = $800 ($6500 – 5700). It’s worthwhile to have the transmission fixed. B. Blue book value is $6000 if transmission works, $5500 if it doesn’t Benefit of fixing the transmission is only $500. Paying $600 to fix transmission is not worthwhile. Observa4ons: Ac4ve Learning 1 •  The $1000 you previously spent on repairs is irrelevant....
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This homework help was uploaded on 03/11/2014 for the course ECON 1 taught by Professor Nagata during the Spring '08 term at UCLA.

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