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Stuart Freight Compony owns a truck that cost $33,000. Currently, the truck's book value is $28,000, and its expected remaining useful life is four years.
Stuart Freight Compony owns a truck that cost $33,000. Currently, the truck's book value is $28,000, and its expected remaining useful life is four years. Stusrt 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 $5,700 per year more than fuel cost for the new truck. The old truck is poid for but, in spite of being in good condition, can be sold for only $18,000. Required Calculate the totel relevsnt costs. Should Stusrt replsce the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out
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