On second thoughts, XYZ decides to keep the old truck. They can choose to retrofit it or not. The retrofit will cost $2,164. After the retrofit, the annual fuel and maintenance cost will be $631 for the first year and increases by $108 each year.

XYZs minimum attractive rate of return is 4%. If XYZ will get rid of the old truck in six years, what is the total present cost of retrofit?

In addition, Without the retrofit, the annual fuel and maintenance cost will be $2,102 for the first year and increases at a rate of 5% each year. If XYZ will get rid of the old truck in six years, what is the total present cost of not retrofit?