Last year to help with your New Year\'s resolutions you purchased a $500 piece o

Question

Last year to help with your New Year's resolutions you purchased a $500 piece of fitness equipment. However, you use it only once a week on average. It is December, and you can sell the equipment for $200 (to someone with a New Year's resolution) and rely on the university gym until you graduate in May. If you don't sell until May, you will get only $100. If you keep the heavy piece, you'll have to pay $25 to move it to the city of your new job (where you interned last summer). There is no convenient gym at the new location. What costs and intangible consequences are relevant to your decision? What should you do?

Explanation / Answer

The costs that are relevant are costs of moving equipment and also how costs fare against benefits. 500 costs are sunk costs. The intangible consequences are effects on health without equipment and gym in new place.

I should keep equipment because only 25 costs will be incurred. The benefit is 100 but consequences on health will be foreever

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