Problem: Module $6$ Textbook Problem $9$

Learning Objective: $6-5$ Make appropriate asset replacement decisions

Walton Freight Company owns a truck that cost $$46,000.$ Currently, the truck's book value is $$25,000,$ and its expected remaining useful life is four years. Walton has the opportunity to purchase for $$31,000$ a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $$5,800$ 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 $$16,000.$

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?

$\backslash$table$[[,$Keep Old,$\backslash$table$[[$Replace With$],[$New$]]],[$Total relevant costs,,$],[$Should Walton replace or continue the old truck?,,$]]$