Indigo Corportation is considering purchasing a new delivery truck. THe truck has many advantages over the company's current truck (not the least o which is that ist runs). THe new truckwould cos $56,295. Because of the increased capacity, reduced maintenance cost, and invreased fuel economy, the new truck is ecpected to generate cost savings of $8100. At the end of eight years, the company will sell the truck for an estimated $28200. Traditonally, the company has used a general rule that it should not accept a proposal unless it has a payback period that is less than 50% of the asset's estimated usful life. Kevin Allen, a new manager, has suggested that the company should not rely only on the payback approach but should also use the net present value method when evaluating new projects. The company's cost of capital is 8%.

Calculate the cash payback period and net present value of the proposed invetment.

Cash payback period ____years Net present value $____