Business, 24.03.2021 23:30 maxg7988

Franklin Freight Company owns a truck that cost $46,000. Currently, the truck’s book value is $22,000, and its expected remaining useful life is five years. Franklin has the opportunity to purchase for $31,700 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,600 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:
a. Calculate Total Relevand Costs for:
a) Keep Old
b) Replace with a New One
b. Should Brewton replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out?
Continue to use the old truck
Replace the old truck

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Franklin Freight Company owns a truck that cost $46,000. Currently, the truck’s book value is $22,00...

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