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Current Attempt in Prosress Carla Vata Corporation is considening parchasing a new detivervituck The truck has many advantages over the comparys current truck inot the

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Current Attempt in Prosress Carla Vata Corporation is considening parchasing a new detivervituck The truck has many advantages over the comparys current truck inot the least of which is that it runs). The new truck would cost 556,760 . Because of the increased capacity, reduced maintenance costs, and increased fuel econiomy, the new truckis expected to senerate cost savingsof $8,800. At the cnd of 8 years. the company willsell the truck for an estienated 528,400 . Iroditionally the company has used a rule of thumb that a proposai should not be accepted unless it has a payback period that is less than 50 s of the assel's estimated useful life Larry Newton, a new manaber, has suggested that the company should not rely solely on the paybsck approach but stiould also employ the net present vatue method when evaluating new projects. The conapanys cost of capital is 8%. Clibk here to view py table. (b) Compute the cashi payback period and net present value of the propesed irvestment if the net present value is negative, use either a nepative sign preceding the number 9 - 45 or parentheser eg(45). Round onswer for present vatue to 0 decimal ploces, es 125. Round oniwer for. Paybock period to 1 decimat place, ey. 10.5. For colculation parposes, use 5 decimal places os disployed in the foctor toble provided. Cashnopback period Net present valuet (b) Doer the project methe the coinpanis cast paybsck criteria? Compute thecash payback period and net present value of the proposod investment (of the net present value is ntsotive, use cither o nesutive tam preceding the number ez -45 or parentheses es (45). Round answer for prevent value to 0 dncimal ploces. eg. 125 . Round answer for Paytatk period to 1 decimal ploce es. 10,5. For colculotion purposes, use 5 decimoi ploces as disployed in the factor toble provided..) Cash paytack period Net present value (b) Does the project meet the company's tash paytiack oritenal Doeis it meet the net present value criteria for acceptancet

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