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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

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:

CarsTrail BlazerGrand Cherokee

Acquisition cost$25,000.00$10,000.00

Repairs$10,000.00

Annual operating costs$2,780.00$1,800.00

(Gas, maintenance, insurance)

The cost NOT relevant for this decision is the

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