Sunk Costs (Exercise 2.6 in Luenberger)A young couple has made a depos

1.	Sunk Costs (Exercise 2.6 in Luenberger)A young couple has made a deposit of the first month's rent (equal to$1,000) on a 6-month apartment lease. The deposit is refundable atthe end of six months if they stay until the end of the lease.The next day they find a different apartment that they like just as well,but its monthly rent is only $900. And they would again have to put adeposit of $900 refundable at the end of 6 months.They plan to be in theapartment only 6 months. Should they switch to the new apartment? Assumean (admittedly unrealistic!) interest rate of 12% per month compounded monthly.
Answer» ANSWER: this life is too DEEP for you , there are two - THREE creeps where they STAYING

Sunk Costs (Exercise 2.6 in Luenberger)A young couple has made a deposit of the first month's rent (equal to$1,000) on a 6-month apartment lease. The deposit is refundable atthe end of six months if they stay until the end of the lease.The next day they find a different apartment that they like just as well,but its monthly rent is only $900. And they would again have to put adeposit of $900 refundable at the end of 6 months.They plan to be in theapartment only 6 months. Should they switch to the new apartment? Assumean (admittedly unrealistic!) interest rate of 12% per month compounded monthly.

Answer»

this life is too DEEP for you , there are two - THREE creeps where they STAYING