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Thornton Freight Company owns a truck that cost $ 4 2 , 0 0 0 . Currently, the truck's book value is $ 2 6

Thornton Freight Company owns a truck that cost $42,000. Currently, the truck's book value is $26,000, and its expected remaining useful life is five years. Thornton 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 $6,700 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 $17,000.
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Calculate the total relevant costs. Should Thornton replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out?
\table[[,Keep Old,\table[[Replace With],[New]]],[Total relevant costs,,],[Should Thomton replace or continue the old truck?,,]]
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