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Please help with Requirement (b) cost information: Acquisition cost: Van : $22,000 SUV : $5,600 Repairs: Van : $5,600 SUV : $0 Annual operating costs:
Please help with Requirement (b)
cost information:
Acquisition cost: Van: $22,000 SUV: $5,600
Repairs: Van: $5,600 SUV: $0
Annual operating costs: gas, maintenence, insurance: Van: $3,000 SUV: $2,800
THE DROP DOWN BOX CONTAINS THE FOLLOWING: annaul operating costs, costs of repairs, purchase price of SUV, total cash expenditures, total cash savings
Darren Bradford's 6-year-old van requires repairs estimated at $5,600 to make it roadworthy again. His friend Andy Moriarty suggested that he buy a 6-year-old SUV instead for $5,600 cash. Andy estimated the following costs for the two cars: EEE (Click the icon to view the cost information.) Requirements (a) What costs are relevant and what costs are not relevant to this decision? Why? (b) What should Darren do? Explain. (c) What quantitative and qualitative factors are relevant to his decision? Why? Requirement (b) What should Darren do? Explain. Begin by completing the following analysis of cash savings and cash expenditures as a result of purchasing the SUV (Use parentheses or a minus sign to show an additional cost. Leave unused cells blank.) Year 1: If Darren buys the SUV Choose from any list or enter any number in the input fields and then click Check
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