The city council of Morristown is considering the purchase of one new fire truck. The options are TRUCK X and TRUCK Y. The purchase is to be financed by money borrowed at 12% per year. The appropriate...

Extracted text: The city council of Morristown is considering the purchase of one new fire truck. The options are TRUCK X and TRUCK Y. The purchase is to be financed by money borrowed at 12% per year. The appropriate financial data are as follows: TRUCK X TRUCK Y Capital investment Maintenance cost per year € 50000 € 64000 € 6000 € 5000 Useful life 6 years 6 years Reduction in fire damage per year € 20000 € 22000 Estimate conventional B-C ratio for both trucks. Which fire truck should be purchased while considering B-C ratio?