PART A
Total repair and annual operating cost of Trail Blazer = $10,000 + $1780 = $ 11780
Total acquisition and annual operating cost of Grand Cherokee = 10000+2400 = 12400
Net saving if john DO NOT buy old used jeep "Grand Cherokee" = 11780 - 12400 = $ 620
Thus John should choose Trail Blazer for net savings of $ 620.
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