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achary Freight Company owns a truck that cost $ 4 1 , 0 0 0 . Currently, the truck s book value is $ 2
achary Freight Company owns a truck that cost $ Currently, the trucks book value is $ and its expected remaining useful life is five years. Zachary has the opportunity to purchase for $ a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $ per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $
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Calculate the total relevant costs. Should Zachary replace the old truck with the new fuelefficient model, or should it continue to use the old truck until it wears out?
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