Alex has just graduated from college and has accepted a job at a different city. Rather than move his furniture, Alex decides to sell it. Alex sets his price by noting that removing the bolts that now anchor his bunk bed to the wall will leave unsightly holes. Alex estimates that the property owner will deduct $100 from his refundable deposit to cover the cost of repairs. Thus, Alex prices the furniture at $100. He considers this a “steal” because he had spent nearly $500 to buy the furniture three years ago.
Much to his surprise, he does not receive any takers. Indeed, Alex has even lost all hope of getting anyone to take the furniture for free. Tomorrow is moving day, and Alex has to turn the apartment over to the owner. Alex knows that he will need to rent a truck and pay landfill fees if he wants to put the furniture in the city’s landfill. Another option is to discard the furniture on the street. Although many students junk their furniture in this fashion, Alex knows that it is illegal. He also knows that the city incurs considerable expenses to clean up after moving day.

Required:
a. Is the amount that Alex paid for the furniture ($500) controllable for his decision?
Is it relevant?
b. Is the estimated cost of repairs ($100) controllable for the decision? Is it relevant?
c. List two relevant costs for Alex’s decision. Why are these costs relevant?
d. When and how could the value of a decision be negative?