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

Question 27

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:
 Geo Prizm  Honda Civic  Acquisition cost $15000$3000 Repairs $3000 Antual operating costs  (Fuel, maintenance, insurance)  $2280$2100\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.

Correct Answer:

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