Question
Brewton Freight Company owns a truck that cost $36,000. Currently, the trucks book value is $29,000, and its expected remaining useful life is four years.
Brewton Freight Company owns a truck that cost $36,000. Currently, the trucks book value is $29,000, and its expected remaining useful life is four years. Brewton has the opportunity to purchase for $27,000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,200 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 $18,000.
Required Calculate the total relevant costs.
keep old truck or purchase new truck. Please show work the last answer I received was incorrect?
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