Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 37

Sandy is considering moving from her apartment into a small house with a fenced yard. The apartment is noisy, and she has difficulty studying. In addition, the fenced yard would be great for her dog. The distance from school is about the same from the house and from the apartment. The apartment costs $750 per month, and she has two months remaining on her lease. The lease cannot be broken, so Sandy must pay the last two months of rent whether she lives there or not. The rent for the house is $450 per month, plus utilities, which should average $100 per month. The apartment is furnished; the house is not. If Sandy moves into the house, she will need to buy a bed, dresser, desk, and chair immediately. She thinks that she can pick up some used furniture for a good price.
Refer to the information for Sandy above. Suppose that the apartment building was within walking distance to campus and the house was five miles away. Sandy does not own a car. How would that affect her decision?
a. It would make the house more desirable.
b. It would make the apartment more desirable.
c. It would make both choices less desirable.
d. It would make both choices more desirable.
e. It would have no effect on the decision; buying or not buying a car is a separate decision.