Please help

4. A small town with limited resources owns an ageing fire truck. The town has two options: it can buy a new truck for a cost of $600,000, providing $100,000 in annual benefits for 10 years; or it can repair its existing truck for a cost of $300,000, providing $100,000 in annual benefits for 5 years; all dollar amounts are in real terms. You may assume a nominal discount rate of 4.9% and an expected inflation rate of 3%. What should the town do? Show all your work