An elderly relative offers to sell you their used 1958 Cadillac Eldorado for $50,000. You note that ...

An elderly relative offers to sell you their used 1958 Cadillac Eldorado 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 Ford Explorer for $35,000. What is the net value of buying the Cadillac?

▸ $50,000, since the Cadillac could be bought for this price.

▸ $40,000, since this is the difference between purchase and resale price of the Cadillac.

▸ $90,000, since the Cadillac could be sold for this price.

▸ $35,000, since this is the value of the car that you really want to buy.