Tina Alberts is thinking about trading her car for a new one. Her present car is only three years old, completely paid for, but out of warranty. The car’s original cost was $22,000.

Lately, the car has been somewhat undependable and the repair bills have been quite high. In the last three months, Tina paid over $1,200 for repairs. Tina intends to use her trade-in as the down payment and then finance the balance. She is looking at a new Nissan which she can get for about $23,000, less her trade.

Tina has asked a group of close friends to help her think of all the relevant advantages and disadvantages of getting the new car. Assume you are part of this group.

Group Requirements:

a. Prepare an informal schedule listing the relevant quantitative factors that Tina should consider. Do not limit your answer to the items found in the problem. Include all the factors you can think of. When possible, try to include estimated dollar amounts in your schedule.

b. Prepare an informal schedule listing the relevant qualitative factors that Tina should consider.

c. From a quantitative point of view, do you think Tina should buy the new car?

d. Considering both quantitative and qualitative factors, do you think Tina should buy the new car?