Munoz Freight Company owns a truck that cost $$39,000.$ Currently, the truck's book value is $$26,000,$ and its expected remaining

useful life is five years. Munoz has the opportunity to purchase for $$28,000$ a replacement truck that is extremely fuel efficient. Fuel

cost for the old truck is expected to be $$6,800$ 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 $$11,000.$

Required

Calculate the total relevant costs. Should Munoz replace the old truck with the new fuel$-$efficient model, or should it continue to use

the old truck until it wears out?