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Brewton Freight Company owns a truck that cost $35,000. Currently, the trucks book value is $20,000, and its expected remaining useful life is four years.

Brewton Freight Company owns a truck that cost $35,000. Currently, the trucks book value is $20,000, and its expected remaining useful life is four years. Brewton has the opportunity to purchase for $26,000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,000 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 $12,000.

Required:
what is the total relevant cost to keep the old?
a. Calculate the total relevant costs.

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