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Walton Freight Company owns a truck that cost $44,000. Currently, the truck's book value is...

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Accounting

Walton Freight Company owns a truck that cost $44,000. Currently, the truck's book value is $26,000, and its expected remaining
useful life is four years. Walton has the opportunity to purchase for $22,000 a replacement truck that is extremely fuel efficient. Fuel
cost for the old truck is expected to be $6,300 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 $14,000.
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?
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