A truck, costing $25,000 and uninsured, was wrecked the very first day it was used. It can either be disposed for $5,000 cash and replaced with a similar truck costing $27,000, or it can be rebuilt for $20,000 and be brand new as far as operating characteristics and looks are concerned. The better decision choice provides a net cost savings of:

$2,000.

$5,000.

$7,000.

$12,000.

Some amount other than these choices.