Question
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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