Question
After an accident Jacks 5-year-old Saturn Vue requires repairs estimated at $8,500 to make it roadworthy again. His friend, Jill, suggested that he should buy
After an accident Jacks 5-year-old Saturn Vue requires repairs estimated at $8,500 to make it roadworthy again. His friend, Jill, suggested that he should buy a 5-year-old used Toyota Corolla instead for $8,500 cash. Julie estimated the following costs for the two cars:
Saturn Vue Toyota Corolla Acquisition cost $30,000 $9,000 Repairs $ 8,500 Annual operating costs $ 6,379 $5,441 (Gas, maintenance, insurance, depreciation) Depreciation $1,172 $731
The cost NOT relevant for this decision is the:
Select one:
a. acquisition cost of the Saturn Vue
b. acquisition cost of the Toyota Corolla
c. repairs to the Saturn Vue
d. annual operating costs of the Toyota Corolla
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