An elderly relative offers to sell you their used 1959 Jaguar Mark 9 saloon for $50,000. You note that very similar cars are selling on the open market for $90,000. You don't care for classic cars and would rather buy a new Subaru Outback for $35,000. What is the net value of buying the Jaguar?
A) $50,000, since the Jaguar could be bought for this price.
B) $35,000, since this is the value of the car that you really want to buy.
C) $90,000, since the Jaguar could be sold for this price.
D) $40,000, since this is the difference between purchase and resale price of the Jaguar.
Correct Answer:
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