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Khaled's 5-year-old BMW requires repairs estimated at $3,000 to make it roadworthy again. His friend, Ahmad, suggested that he should buy a 5-year-old used Honda

Khaled's 5-year-old BMW requires repairs estimated at $3,000 to make it roadworthy again. His friend, Ahmad, suggested that he should buy a 5-year-old used Honda Civic instead for $5,000 cash. Ahmad estimated the following costs for the two cars:

BMW Honda Civic

Acquisition cost $15,000 $5,000

Repairs $ 3,000

Annual operating costs

(Gas, maintenance, insurance) $ 2,280 $2,100

The cost NOT relevant for this decision is the:

[[selectone]]

a. repairs to the BMW

b. acquisition cost of the BMW

c. annual operating costs of the Honda Civic

d. the acquisition cost of the Honda Civic

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