:Relevant and sunk costs Don Baxter's 6-year-old Chevrolet Impala requires repairs estimated at $5,400 to make it roadworthy again. His friend Aaron Bloom suggested that he buy a 6-year-old Ford Escort instead for $5,400 cash. Aaron estimated the following costs for the two cars:

Costs Impala Escort Acquisition Cost $24,000 $5,400 Repairs $5,400 0 Annual operating cost (gas, maintenance, insurance $2,900 $1,800