On second thoughts, XYZ decides to keep the old truck. They can choose to retrofit it or not. The retrofit will cost $$3,038.$ After the retrofit, the annual fuel and maintenance cost will be $$602$ for the first year and increases by $$189$ each year.

$xYZ\text{'}$s minimum attractive rate of return is $4\%.$ If $xYZ$ will get rid of the old truck in six years, what is the total present cost of retrofit?

Question $4$

$5$ pts

Without the retrofit, the annual fuel and maintenance cost will be $$1,632$ for the first year and increases at a rate of $8\%$ each year. Given $xYZ\text{'}$s minimum attractive rate of return is still $4\%.$ If $xYZ$ will get rid of the old truck in six years, what is the total present cost of not retrofitting?