Arizona Truck Company (ATC)is Considering the Replacement of an Old

Arizona Truck Company (ATC) is considering the replacement of an old truck.The old truck can be sold for $7,800 now.If it is sold in one year,the resale price will be $5,500,but ATC will spend $2,500 just before selling the truck to make it attractive to a buyer.Assume a cost of capital of 12%.What is the total cost of keeping the old truck for one more year? Express the cash flow in terms of its future value one year from now.

A) $5,121
B) $5,736
C) $4,800
D) $5,376
E) None of the above