Carla Vista Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck $($not the least of which is that it runs$).$ Thenew truck would cost $$55,040.$ Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $$8,600.$ At the end of $8$ years, the company will sell the truck for an estimated $$28,400.$ Traditionially the company has used a rule of thumb that a proposal should not be accepted unless it has a payback period that is less than $50\%$ of the asset's estimated useful life. Larry Newton, a new manager, has suggested that the company should not rely solely on the payback approach, but should also employ the net present value method when evaluating new projects. The company's cost of capital is $8\%.$

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$($a$)$

Compute the cash payback period and net present value of the proposed investment. $($If the net present value is negative, use either a negative sign preceding the number eg $-45$ or parentheses eg $(45).$ Round answer for present value to $0$ decimal. places, e$.$g$.125.$ Round answer for Payback period to $1$ decimal place, e$.$g$.10\mathrm{.}5.$ For calculation purposes, use $5.$ decimal ploces as displayed in the factor table provided.$)$

Cash payback period

years

Net present value