Exercise 24-1 Palo Alto Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the last of which is that it runs). The new truck would cost $56,710. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of 57,590. At the end of years the company will sell the truck for an estimated $27,900. Traditionally 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 Larry Newton, a new manager, has suggested that the company should not rely solely on the payback approach, but should employ the net present value method when evaluating new projects. The company's cost of capital Go here to view the factor table (For calculation purposes, we decimal places as displayed in the factor table provided) Your answer is partially correct. Try again Compute the cash payback period and not present value of the proposed investment. If the net present value is negative, weither a negative in preceding the number eg -45 or parentheses (45) Round answer for present value to decimal places . 125. Round wer for Payback period to decima 10.5.) Cash payback period Net present value Your answer is partially correct. Try again Does the project meet the company's cash payback criteria Does the present value for acceptance