The city council of Morristown is considering the purchase of one new fire truck. The options are
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The city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The appropriate financial data are as follows: Truck X Truck Y Capital investment $50,000, $64,000 Maintenance cost per year $6,000, $5,000 Useful life 6 years, 6 years Reduction in fire damage $20,000, $22,000 per year The purchase is to be financed by money borrowed at 12% per year. Which ?re truck should be purchased?
a. Neither Truck X nor Truck Y
b. Truck X
c. Truck Y
d. Both Truck X and Truck Y
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Related Book For 
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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