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John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a

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John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash. Sherry estimated the following costs for the two cars: Acquisition cost Repairs Trail Blazer Grand Cherokee $6,000 Annual operating costs $25,000 $ 6,000 (Gas, maintenance, insurance) $2,280 $2,100 What should John do? What are his savings in the first year? (Show your calculations)

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