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in Corporntion is considering purchasing a new delivery truck The truck has many advantages over the company's current truck t the least of which is

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in Corporntion is considering purchasing a new delivery truck The truck has many advantages over the company's current truck t the least of which is that it runs). The new truck would cost \$55,250. Because of the increased capacity, reduced maintenance sts, and increased fuel economy, the new truck is expected to generate cost savings of $8,500. At the end of 8 years, the company Il sell the truck for an estimated $27,000. Traditionally the company has used a rule of thumb that a proposal should not be accepted nless it has a payback period that is less than 50% of the asset's estimated useful life. Larry Newton, a new manager, has suggested nat the company should not rely solely on the payback approach, but should also employ the net present value method when valuating new projects. The company's cost of capital is 8%. Click here to view the factor table. (a) Compute the cash payback period and net present value of the proposed investment. Cash payback period years Net present value $ (b) Does the project meet the company/s cash payback criteria? Does it meet tha net present value criteria for acceptance

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