Exercise 6-17A Asset replacement-opportunity cost LO 6-5 alton-Freight Company owns a truck that cost $48.000...
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Exercise 6-17A Asset replacement-opportunity cost LO 6-5 alton-Freight Company owns a truck that cost $48.000 Currently. the truck's book value is $23.000 a its expected remaining useful life is four years. Walton has the opportunity to purchase for replacement truck that is extremely fuel efficient Fuel cost for the old truck is expected to be $5,300 per $28,000 a 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 $17000. equired Calculate the total relevant costs. Should Walton replace the old truck with the new fu should it continue to use the old truck until it wears out? el-efficient model, or Keep Old Roplaco With Now Total relevant costs Should Walton replace or continue the old truck
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