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need help with this question Solomon Freight Company owns a truck that cost $47,000. Currently, the truck's book value is $24,000, and its expected remaining
need help with this question
Solomon Freight Company owns a truck that cost $47,000. Currently, the truck's book value is $24,000, and its expected remaining useful life is four years. Solomon has the opportunity to purchase for $31.500 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,100 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 Solomon replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out Step by Step Solution
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