Requirement: Conduct a cost/ benefit analysis using a typical 2X2 matrix: 1. Pur

ID: 2451779 • Letter: R

Question

Requirement: Conduct a cost/ benefit analysis using a typical 2X2 matrix:

1. Purchased a new corolla for $22,000 on 1/1/2009

2. It was damaged because of hail on 2/28/2009

3. The insurance company pays $2,900 (3,400 - 500 deductable )

4. In order to repair the damage it would cost $2,900, but the value of the car would be reduced by $2,000 because of the accident report.

5. Net replacement cost ( same model, color, etc..) will be $3,500 ( out of pockets costs) after trade in the old one.

Repair Replace with a New Net Difference Benefit Costs Net Benefit ?

Requirement: Conduct a cost/ benefit analysis using a typical 2X2 matrix: 1. Pur

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