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2. Because of increased growth on the city's west side, two additional fire trucks will be needed in 2 years. Each fire engine costs $500,000,
2. Because of increased growth on the city's west side, two additional fire trucks will be needed in 2 years. Each fire engine costs $500,000, but the city negotiates a price of $900,000 for the two, with payment due when the trucks are delivered at the end of the 2nd year. a. As the financial advisor to the city, what annual contribution to a savings fund would you recommend the city make to accumulate the necessary funds under the assumption that the city can earn a return of 5%? b. What annual contribution would you recommend if the city could earn a return of 10%
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