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Pachyderm Moving is reviewing data related to a new moving truck proposal. The new truck will cost $120,000 and have a five-year useful life. Management estimates that at the end of its useful life, the new truck will be sold for its salvage value of $15,000. Pachyderm expects that the annual net after-tax cash savings will be $45,000 in each of the five years. The old truck that is being replaced has no remaining sales value. What is the payback period on the truck proposal? 2.7 years 2.4 years 2.2 years 2.9 years Which of the following is true about the payback method and the discounted payback method? The payback method considers the time value of money while the discounted payback method does not consider the time value of money. They both require the calculation of a discount, or hurdle rate. They both ignore cash flows which occur after the payback period. They are both measures of profitability