Stuart Freight Company owns a truck that cost $48,000. Currently, the trucks book value is $28,000, and its expected remaining useful life is four years. Stuart has the opportunity to purchase for $27,000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,200 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 $13,000.

Required

Calculate the total relevant costs. Should Stuart 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 $ $