Exercise $13-17$A $($Algo$)$ Asset replacement$$opportunity cost LO $13-5$

Walton Freight Company owns a truck that cost $$45,000.$ Currently, the truck$$s book value is $$24,000,$ and its expected remaining useful life is five years. Walton has the opportunity to purchase for $$29,000$ a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $$5,900$ per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $$13,000.$

Required

Calculate the total relevant costs. Should Walton replace the old truck with the new fuel$-$efficient model, or should it continue to use the old truck until it wears out?