Chapter 25 Homework Question 1 of 5 < -15 1 yen, the coopy posal should not be accepted Linkin Corporation is considering purchasing anew delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $55.500 Because of the increased rapacity reduced maintance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,400 A will sell the truck for an estimated $27,000. Traditionally thes unless it has a payback period that is less than 50% of the asset that the company should not rely solely o avtack approach, but t evaluating new projects. The company's cost of capitalis Click here to view the factor table (a) Compute the cash payback period and pets negative sign preceding the number eg-450 for Playback period to 1 decimal Cash payback perio Net present value pany has used ethod when value of the proposed investne 45 und wer for prese the factor tate provided) Chapter 25 Homework Question 1 of 5 (b) Does the project meet the company's cash payback criteria? Does it meet the net present value criteria for acceptance? eTextbook and Media Save for Later