What is the value that should be used as p for the, Operation Management

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What is the value that should be used as p for the

A truck was purchased 3 years ago for $50,000 and can be sold today for $25,000. The operating costs are $9,000 per year, and it is expected to last 4 more years with a $5,000 salvage value. A new truck, which will perform that same service, can be purchased for $55,000, and it will have a life of 10 years with operating costs of $28,000 per year and a $10,000 salvage value.

What is the value that should be used as P for the presently owned vehicle in a replacement study?

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