Question
Alex lives in Melbourne and has two young children from his spouse Rita. He works in a warehouse located 40 kilometres away from his place
Alex lives in Melbourne and has two young children from his spouse Rita. He works in a warehouse located 40 kilometres away from his place of residence. His spouse is an office administration worker in a primary school that is about 15 kilometres away. Alex is a busy person as he has to drop off his kids at school and his spouse at work before he drives to his workplace. He owns a car that has a book value of $12,000 and remaining useful life of 4 years. His car got broken and requires a total repairs cost of $800. He has received an offer to purchase a second-hand car that is driven less than 50,000 kilometres and is in a good state. The offer price is $20,000 that could serve him for 10 years. The new car could save Alex a total of $200 per week on fuel. He is comparing which option is better for him and his family. What are the relevant costs that Alex should include in his analysis? List some of the qualitative factors that he should consider in his analysis.
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