Your father wants to restore a '68 Chevelle. However, he is unsure if it is worth thework.He can pull a 350-small block engine from the junk yard at S400 and will onlyneed $200 in parts to get it running.A remanufactured transmission is $1,250 from a local parts store.He will do the interior (dash and seats) himself with $300 in materials.He plans $950 in tires, brakes, and suspension parts.The paint job will cost $650.He figures he can resell it at $40,000.The car is currently posted on an auto trader site for $25,000.1. What is the ROI (write as a percentage)?2. Is it a good idea (Yes or No, based on ROI)?

An investment in a job or an activity involves many types of expenses, from purchasing the material…

Your father wants to restore a '68 Chevelle. However, he is unsure if it is worth the work. He can pull a 350-small block engine from the junk yard at 400 and will only need $200 in parts to get it running. A remanufactured transmission is $1,250 from a local parts store. He will do the interior (dash and seats) himself with S300 in materials. He plans $950 in tires, brakes, and suspension parts. The paint job will cost $650. He figures he can resell it at $40,000. The car is currently posted on an auto trader site for $25,000. 1. What is the ROI (write as a percentage)? 2. Is it a good idea (Yes or No, based on ROI)?

Your father wants to restore a '68 Chevelle. However, he is unsure if it is worth the work. He can pull a 350-small block engine from the junk yard at 400 and will only need $200 in parts to get it running. A remanufactured transmission is $1,250 from a local parts store. He will do the interior (dash and seats) himself with S300 in materials. He plans $950 in tires, brakes, and suspension parts. The paint job will cost $650. He figures he can resell it at $40,000. The car is currently posted on an auto trader site for $25,000. 1. What is the ROI (write as a percentage)? 2. Is it a good idea (Yes or No, based on ROI)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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