Indigo Corporation is considering purchasing anew delivery truck. The truck has many advantages ower the company scurrent truck (not the least of which is that it runs). The new truck would cost $56,295. Because of the increased capacity induced maliterance Costs, and increased fuel economy, the new truck is expected to generate cost swings of 56,100 At the end of eightyears the company willsell the truck for an estimated \$28,200. Traditionally, the company has used a generat ruke that it should not zcomt * proposal unless it has a payback period that is less than 50% of the asset sestimated useful life, loevin Allerh a inw manaits hat suggested that, the company should not rely only on the payback approach but should also use the net pretent volse methou wnon evaluating new projects. The company's cost of capital is 89C