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John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 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 $6,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash. Sherry estimated the following costs for the two cars: Trail Blazer $29,000 $6,000 Grand Cherokee $6,000 Acquisition cost Repairs Annual operating costs (Gas, maintenance, insurance) $2,780 $1,800 What should John do? What are his savings in the first year? O A. Buy the Grand Cherokee; $980 OB. Fix the Trail Blazer; $3,980 O C. Buy the Grand Cherokee; $7,800 OD. Fix the Trail Blazer, $6,780
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