Oriole Corporation is reviewing an investment proposal. The initial cost is $$105,400.$ Estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income for each year are presented in the following schedule. All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is assumed to equal its book value. There would be no salvage value at the end of the investment's life.

$\backslash$table$[[$Investment Proposal$],[$Year$,$Book Value,$\backslash$table$[[$Annual$],[$Cash Flows$]],\backslash$table$[[$Annual$],[$Net Income$]]],[1,$$$69,500,$$$44,600,$$$8,700$

Blossom Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck $($not the least of which is that it runs$).$ The new truck would cost $$55,250.$ Because of the increased capacity, reduced maintence costs, and increased fuel economy, the new truck is expected to generate cost savings of $$8,500.$ At the end of $8$ years, the company will sell the truck for an estimated $$27,300.$ 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 life. Larry Newton, a new manager, has suggested that the company should not rely solely on the payback approach, but should also employ the net present value method when evaluating new projects. The company's cost of capital is $8\%.$

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$($a$)$

Compute the cash payback period and net present value of the proposed investment. $($If the net present value is negative, use either a negative sign preceding the number eg $-45$ or parentheses eg $(45).$ Round answer for present value to $0$ decimal places, e$.$g$.125.$ Round answer for Payback period to $1$ decimal place, e$.$g$.10\mathrm{.}5.$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

Cash payback period

years

Net present value