Rachel is deciding whether to remain in the home she has lived in for the past ten years,which is located very near her work,or to move into a newer home that is located in the suburbs farther from her job.The old house was purchased for $160,000 and has a market value of $220,000.The new home can be purchased for $285,000.Which of the following is not relevant to Rachel's decision?

Question

Quizplus · Accepted Answer

The cost of the old house is a sunk cost and not relevant to Rachel's decision about moving. Relevant factors should include current and future costs and benefits, not past expenditures.

Rachel Is Deciding Whether to Remain in the Home She