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need help on chart Exercise 13-17A (Algo) Asset replacement decisions-opportunity cost LO 13-5 Zachary Freight Company owns a truck that cost $43,000. Currently, the truck's
need help on chart
Exercise 13-17A (Algo) Asset replacement decisions-opportunity cost LO 13-5 Zachary Freight Company owns a truck that cost $43,000. Currently, the truck's book value is $23,000, and its expected remaining useful life is four years. Zachary has the opportunity to purchase for $31.400 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,500 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 $19,000, Required Calculate the total relevant costs should Zachary replace the old truck with the new fuel-efficient model or should it continue to use the old truck until it wears out? Keep Old Replace With New Total relevant costs Should Zachary replace or continue the old truck Step by Step Solution
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