Question: Please explain step by step because i have to do it in excel (better if you show it in excel with all the formulas. Don

Please explain step by step because i have to do it in excel (better if you show it in excel with all the formulas.

Don Baxters 6-year-old Chevrolet 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:

Costs	Impala	Escort
Acquisition cost	$24,000	$5,400
Repairs	$5,400	$0
Annual operating costs: gas, maintenance, insurance	$2,900	$1,800

What costs are and are not relevant to this decision? Why?

What should Don do? Explain.

What quantitative and qualitative factors are relevant to his decision? Why?

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