Please show me how I can solve the following question in excel.
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 fire truck should be purchased?
The correct answer is Truck X.
