Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a cost of $1 per car. If it is also possible for Rex to buy a high-auality hydraulic car

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.4CE
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Rex Carr could pay $10 for a shovel that lasts one
year and pay $5 a car to his brother Scoop to bury
the cars, or he could buy a low-quality car
smasher that costs $200 a year to own and that
smashes cars at a cost of $1 per car. If it is also
possible for Rex to buy a high-quality hydraulic car
smasher that cost $650 per year to own and if with
this smasher he could dispose of cars at a cost of
$.75 per car, it would be worthwhile for him to buy
this high quality smasher if he planned to dispose
of
• at least 1,810 cars per year.
B.
no more than 1,800 cars per year.
• C.
no more than 900 cars per year.
• D.
at least 900 cars per year.
E.
at least 1,800 cars per year.
Transcribed Image Text:Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a cost of $1 per car. If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $650 per year to own and if with this smasher he could dispose of cars at a cost of $.75 per car, it would be worthwhile for him to buy this high quality smasher if he planned to dispose of • at least 1,810 cars per year. B. no more than 1,800 cars per year. • C. no more than 900 cars per year. • D. at least 900 cars per year. E. at least 1,800 cars per year.
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