Question
John's 8yearold Chevrolet Trail Blazer requires repairs estimated at $11,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a
John's 8yearold Chevrolet Trail Blazer requires repairs estimated at $11,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5yearold used Jeep Grand Cherokee instead for $11,000 cash. Sherry estimated the following costs for the two cars:
| Trail Blazer | Grand Cherokee | ||
| Acquisition cost | $27,000 | $11,000 | |
| Repairs | $11,000 | - | |
| Annual operating costs | |||
| (Gas, maintenance, insurance) | $2,580 | $2,000 |
The cost NOT relevant for this decision is the ________.
A.repairs to the Trail Blazer
B.acquisition cost of the Grand Cherokee
C.annual operating costs of the Grand Cherokee
D.acquisition cost of the Trail Blazer
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