Chris is tired of driving the old used car she bought 2 years ago for $18,000. She estimates it is worth about $8,000 now. A car salesman gave her this deal: "Look, I'll gives you $10,000 in trade in for this year's model. This is $2,000 more than you expected, and it is $3,000 more than the current official Kelly Blue Book value for your car. Our sales price for your new car is only $28,000, which is $6,000 less than the manufacturer's sticker price of $34,000. Considering the extra $3,000 on trade in and the $6,000 reduction from sticker, your are paying $9,000 less for the new car. So, I am giving you a great deal, and you get $2,000 more for your old clunker that you estimated it was worth. So let's trade now. Okay? ". If Chris were to perform a replacement study at this moment, what is the correct first cost for the defender?

1. $18,000
2. $8,000
3. $10,000
4. $7,000