Question
Bridgeport cooperation is considering purchasing a new delivery truck.the truck has many advantages over the company s current truck.tge new truck would cost $56,985.because of
Bridgeport cooperation is considering purchasing a new delivery truck.the truck has many advantages over the company s current truck.tge new truck would cost $56,985.because of the increased capacity, reduced maintenance costs,and increased fuel economy,the new truck is expected to generate cost saving of $8,700.at the end of eight years,the company will sell the truck for an estimated $27,700.tradionally,the company ha used general rule that it should not accept a proposal unless it has a payback period that is less than 50%of the assests s estimated useful life.jason young,a new manager ,has suggested that the company should not rely only on the payback approach but should also use the net present value method when evaluating new projects.the company s cost of capital is 8%
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