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  3. achary freight company owns a truck that cost $41,

achary Freight Company owns a truck that cost $41,000. Currently, the trucks book value is...

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Accounting

achary Freight Company owns a truck that cost $41,000. Currently, the trucks book value is $23,000, and its expected remaining useful life is five years. Zachary has the opportunity to purchase for $30,300 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,900 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 $15,000.
Required
Calculate the total relevant costs. Should Zachary replace 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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