A Truck, Costing $25,000 and Uninsured, Was Wrecked the Very

Multiple Choice

A truck, costing $25,000 and uninsured, was wrecked the very first day it was used. The truck can either be disposed for $5,000 cash and replaced with a similar truck costing $27,000, or rebuilt for $20,000 and be "new" as far as operating characteristics and looks are concerned. The net relevant cost of the replacing option is:

A) $5,000.
B) $20,000.
C) $22,000.
D) $25,000.
E) $27,000.