Answer the Following Questions Using the Information Below:
George's 5-Year-Old

question 173

Multiple Choice

Answer the following questions using the information below:
George's 5-year-old Geo Prizm requires repairs estimated at $3000 to make it roadworthy again.His friend,Julie,suggested that he should instead buy a 5-year-old used Honda Civic for $3000 cash.Julie estimated the following costs for the two cars:
$$\begin{array} { l r r } & \text { Geo Prizm } & \text { Honda Civic } \\\text { Acquisition cost } & \$ 15000 & \$ 3000 \\\text { Repairs } & \$ 3000 & - \\\text { Antual operating costs } & & \\\text { (Fuel, maintenance, insurance) } & \$ 2280 & \$ 2100\end{array}$$
-The cost NOT relevant for this decision is the:

• A)annual operating costs of the Honda Civic.
• B)acquisition cost of the Honda Civic.
• C)repairs to the Geo Prizm.
• D)acquisition cost of the Geo Prizm.

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