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Answer the Following Questions Using the Information Below:
John's 8-Year-Old

Question 31

Multiple Choice

Answer the following questions using the information below:
John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash. Sherry estimated the following costs for the two cars:
 Trail Blazer  Grand Cherokee  Acquisition cost $25,000$6,000 Repairs $6,000 Annual operating costs  (Gas, maintenance, insurance)  $2,280$2,100\begin{array}{lrr}&\text { Trail Blazer }&\text { Grand Cherokee }\\\text { Acquisition cost } & \$ 25,000 & \$ 6,000 \\\text { Repairs } & \$ 6,000 & - \\\text { Annual operating costs } & & \\\text { (Gas, maintenance, insurance) } & \$ 2,280 & \$ 2,100\end{array}
-The cost NOT relevant for this decision is the ________.


A) acquisition cost of the Trail Blazer
B) acquisition cost of the Grand Cherokee
C) repairs to the Trail Blazer
D) annual operating costs of the Grand Cherokee

Correct Answer:

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