Relevant and sunk costs Don Baxter's 6-year-old Impala requires repairs estimated at $5,400 to make it roadworthy again. His friend Aaron Bloom suggested that he buy a 6-year-old Ford Escort instead for $5,400 cash. Aaron estimated the following costs for the two cars:

Required(a) What costs are relevant and what costs are not relevant to this decision? Why?(b) What should Don do? Explain.(c) What quantitative and qualitative factors are relevant to his decision? Why?

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ESCORT COSTS IMPALA Acquisition cost Repairs Annual operating costs: gas, maintenance, insurance $24,000 $5,400 0. 2,900 1,800