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John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $10,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $10,000 cash. Sherry estimated the following costs for the two cars:
Cars Trail Blazer Grand Cherokee
Acquisition cost $25,000.00 $10,000.00
Repairs $10,000.00 -
Annual operating costs $2,780.00 $1,800.00
(Gas, maintenance, insurance)
Question 1: The cost NOT relevant for this decision is
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