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Lisa has been working as a management consultant for 3 years. When starting her new position, she had to buy a car in order to
Lisa has been working as a management consultant for 3 years. When starting her new position, she had to buy a car in order to commute (purchase price = $28,000) as well as a new laptop (purchase price = $1,500). She has two possibilities in mind for next year: - Option A (baseline option): continuing her job as a management consultant (expected yearly salary = $80,000). - Option B: doing a one-year full time training in information systems in order to be later on able to apply for jobs that are better paid than her current one. She already paid some non-refundable registration costs ($500) to get her application examined but would have to pay another $12,000 of tuition fees in case she decides to go for the training. On the other hand, she would reduce her yearly gazoline costs by $2,000 since the training center is much closer to her appartment than her current workplace. Using the relevant cost methods, how would classify the various amounts mentioned here
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