Question
Charlie Cosgrove purchased a car from Paul and Biscuit's Used Car Emporium two years ago. Charlie paid $4,650 for the used Honda CR-V. Charlie immediately
Charlie Cosgrove purchased a car from Paul and Biscuit's Used Car Emporium two years ago. Charlie paid $4,650 for the used Honda CR-V. Charlie immediately updated the stereo system for $600, replaced the generic rims with carbon fiber rims for $400, and added neon lighting underneath for $550. Charlie really wants to get the windows tinted for $350, but his mechanic told Charlie that the muffler and brakes and timing belt must be replaced very soon. The total repairs will cost $3,200! Charlie can't afford to get tinted windows if he makes the repairs. Charlie's friend Annie suggested he buy her car, a Jeep Cherokee a couple years newer than the CR-V for $4,000. The Jeep already has tinted windows and a great stereo system. It doesn't have neon lighting or carbon fiber rims, however. Charlie checks around on Craig's List and Facebook Marketplace and thinks he can sell the Honda CR-V for $1,200 as is. Should Charlie repair and keep the CR-V or sell the CR-V and buy Annie's Jeep Cherokee? Group of answer choices
Keep and repair the CR-V to save $800.
Sell the CR-V and buy the Jeep to save $3,200.
Sell the CR-V and buy the Jeep to save $400.
Keep and repair the CR-V to save $5,000 loss if Charlie were to sell the CR-V.
Keep the CR-V because he loves it even though it will cost him $750 more than replacing the CR-V with the Jeep.
Sell the CR-V, buy the Jeep and save $650,
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