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

question 197

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:
$\begin{array}{lrr}&\text { Trail Blazer }&\text { Grand Cherokee }\\\text { Acquisition cost } & \$ 25,000 & \$ 6,000 \\\text { Repairs } & \$ 6,000 & - \\\text { Annual operating costs } & & \\\text { (Gas, maintenance, insurance) } & \$ 2,280 & \$ 2,100\end{array}$
-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

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Definitions:

Adjoining Lake

A body of water that is directly connected or next to a particular piece of land or property.

Tenancy in Common

A form of joint ownership of property where each owner holds an undivided interest in the property, and there is no right of survivorship.

Joint Tenancy

A form of property co-ownership that provides equal shares and rights to the property, with the right of survivorship upon a tenant's death.

Ownership

The legal right to possess, use, control, and dispose of an asset or property.