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:

Capacity For Change

The active phase of self-regulation; willpower.

Self-Regulation

The process by which an individual controls their behavior, emotions, and thoughts towards achieving long-term goals.

Capacity For Change

The potential or ability of an individual or system to modify its attributes or behavior in response to external conditions or stimuli.

Willpower

The ability to resist short-term temptations in order to meet long-term goals.