John's 8 year old Chevrolet Trail Blazer requires repairs estimated at $10,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5 year old used Jeep Grand Cherokee instead for $10,000 cash. Sherry estimated the following costs for the two cars: Trail Blazer $28,000 $10.000 Grand Cherokee $10,000 Acquisition cost Repairs Annual operating costs (Gas, maintenance, insurance) $2,600 $1,900 What should John do? What are his savings in the first year? O A. Buy the Grand Cherokee, $780 OB. Fix the Trail Blazer 55 780 OC Fix the Trail Blazer, 59,347 OD. Buy the Grand Cherokee, $11,900 Which of the following best describes the internal rate-of-return (IRR) method? O A. it calculates the discount rate at which an investment's total of all expected cash inflows equals the present value of its expected cash outflows. O B. it calculates the discount rate at which an investment's present value of the total of all expected cash inflows equals the present value of its expected cash outflows. O c. it calculates the discount rate at which an investment's future value of all expected cash inflows equals the present value of its expected cash outflows OD. it calculates the discount rate at which sum of an investment's present value of all expected cash inflows equals the present value of its expected cash outflows