Suppose your company has just found $100,000 worth of outdated inventory in an old warehouse (this is the original manufacturing cost). Your boss asks you to consider two options: (1) re-engineer the outdated parts at a cost of $30,000, and ideally resell them for $60,000, or (2) scrap them for $15,000 cash (which is certain) in a second-hand market. What advice would you give your boss? Explain in your own words and give the data that supports your answer. *

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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Suppose your company has just found $100,000 worth of outdated inventory in
an old warehouse (this is the original manufacturing cost). Your boss asks you to
consider two options: (1) re-engineer the outdated parts at a cost of $30,000,
and ideally resell them for $60,000, or (2) scrap them for $15,000 cash (which is
certain) in a second-hand market. What advice would you give your boss?
Explain in your own words and give the data that supports your answer.
Transcribed Image Text:Suppose your company has just found $100,000 worth of outdated inventory in an old warehouse (this is the original manufacturing cost). Your boss asks you to consider two options: (1) re-engineer the outdated parts at a cost of $30,000, and ideally resell them for $60,000, or (2) scrap them for $15,000 cash (which is certain) in a second-hand market. What advice would you give your boss? Explain in your own words and give the data that supports your answer.
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