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Exercise 13-17A (Algo) Asset replacement decisions-opportunity cost LO 13.5 Jordan Freight Company owns a truck that cost $42,000. Currently, the truck's book value is $22,000,
Exercise 13-17A (Algo) Asset replacement decisions-opportunity cost LO 13.5 Jordan Freight Company owns a truck that cost $42,000. Currently, the truck's book value is $22,000, and its expected remaining useful life is five years. Jordan has the opportunity to purchase for $30.100 a replacement truck that is extremely fuel efficient. Fue: cost for the old truck is expected to be $5,600 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 $10,000. Required Calculate the total relevant costs. Should Jordan replace the old truck with the new fuel-efficient model, or shouid it continue to use the old truck until it wears out
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