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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:

Trail Blazer Grand Cherokee

Acquisition cost $25,000 $10,000

Repairs $10,000

Annual operating costs

(Gas, maintenance, insurance) $2,780 $1,800

The cost NOT relevant for this decision is the ________.

1.

acquisition cost of the Trail Blazer

2.

acquisition cost of the Grand Cherokee

3.

repairs to the Trail Blazer

4.

annual operating costs of the Grand Cherokee

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