Final answer:
The cost of the old house is not relevant to Andrew's decision to move because it is a sunk cost and does not affect the current situation. What matters are the market value of the old house, the cost of the new house, and the driving distance to work.
Step-by-step explanation:
When Andrew is considering whether to stay in his current home or to move to a new one, he should be evaluating factors that are directly related to the costs and benefits of the current and potential new homes. The driving distance to work is relevant because it affects daily commuting costs and quality of life. The market value of the old house is important as it impacts the amount of money Andrew can get from selling it to finance the purchase of the new house. The cost of the new house is obviously critical as it is an expenditure Andrew will need to plan for. However, the cost of the old house (what Andrew originally paid for it) is not directly relevant to the decision he is currently making, because it is a sunk cost and does not affect the present value or the future costs associated with moving.