Truck X Truck Y Capital investment Maintenance cost per year $50,000 $64,000 $6,000 $5,000 Useful life 6 years 6 years Reduction in fire damage $20,000 $22,000 per year

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A: In this we have to determine the interest cost of each year.

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A: The internal rate of return also known as IRR is the discount rate that drives a project's net…

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Q: please step by step solution.

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A: Return on capital computes how much amount business generates by using funds of capital providers.

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A: In this we have to calculate present value of expenses and than find out equivalent annual expenses.

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A: In this both options are equal in term of cost and mileage.

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A:

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