Create a cost-benefit analysis and give an explanation behind it. Ignore inflation.

Give a recommendation regarding the purchase.

2. A city has learned that by buying larger garbage trucks, it could reduce labor costs for garbage removal. Note: All the dollar amounts below are in this year's dollars (constant dollars). - 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. - Inflation (for the next 4 years) is expected to average 3\%. Assuming the costs and benefits are incurred at the end of the year, should the city buy the trucks