Tim owns a $2016$ Jeep Grand Cherokee with $75,000$ miles. Their mechanic has informed them that an engine overhaul is now required

to safely drive the vehicle. Tim is upset because the cost of the overhaul is estimated to be $$5,500,$ and they have just spent $$1,000$ on

new tires. They had bought the Jeep just twelve months ago for $$14,000.$ The mechanic told Tim that they have a very similar Jeep for

sale for $$11,000,$ and they would give Tim $$6,000$ for their Jeep in its current condition. What should Tim do and why?

Tim should not accept the mechanic's offer since the new Jeep would cost $$5,500$ more than the cost of fixing the current

Jeep.

Tim should accept the mechanic's offer because the $$6,000$ offer plus $$5,500$ repair is more than the $$11,000$ cost of the

new Jeep.

Tim should not accept the offer because the $$14,000$ cost of the original jeep minus the $$5,500$ repair cost is less than the

$$11,000$ cost of the new Jeep.

Tim should accept the mechanic's offer since the net cost is $$5,000$ compared to $$5,500$ to fix the current Jeep.