A? four-year-old truck has a present net realizable value of ?$5,500 and is now expected to have a market value of ?$1,700 after its remaining? three-year life. Its operating disbursements are expected to be ?$700 per year. An equivalent truck can be leased for ?$0.40 per mile plus ?$30 a day for each day the truck is kept. The expected annual utilization is 3,000 miles and 30 days. If the? before-tax MARR is 15?%, find which alternative is better by comparing? before-tax equivalent annual costs.
a. Using only the preceding information; The? before-tax equivalent annual cost for keeping the old truck is $?