A city has learned that by buying larger garbage trucks, it could reduce labor costs for garbage removal. Cost of the trucks today is $400,000. Annual savings in this year's constant dollars is $90,000. Trucks will last for 4 years and then will be sold for $100,000. The city can borrow money at a 7% discount rate to purchase the trucks.

Assuming the costs and benefits are incurred at the end of the year, should the city buy the trucks?

Create a cost benefit analysis and give a recommendation with an explanation why or why not to buy the trucks.