An Elderly Relative Offers to Sell You Their Used 1

Multiple Choice

An elderly relative offers to sell you their used 1 959 Jaguar Mark 9 saloon for $50 000. You note that very similar cars are selling on the open market for $90 000. You don't care for classic cars and would rather buy a new Subaru Outback available to you for $35 000. What is the net value of buying the Jaguar?

A) $50 000, since the Jaguar could be bought for this price.
B) $40 000, since this is the difference between purchase and resale price of the Jaguar.
C) $90 000, since the Jaguar could be sold for this price.
D) $35 000, since this is the value of the car that you really want to buy.