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John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $9000 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 $9000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $9000 cash. Sherry estimated the following costs for the two cars: Trail Blazer Grand Cherokee $28,000 $9000 $9000 Acquisition cost Repairs Annual operating costs (Gas, maintenance, insurance) $2480 $1600 The cost NOT relevant for this decision is the: acquisition cost of the Trail Blazer acquisition cost of the Grand Cherokee repairs to the Trail Blazer annual operating costs of the Grand Cherokee
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