Weyqandt, Financial and Managerial, Je ileyPLUS Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT en Shot 42.21 HENT RESOURCES 25 Exercise 25-01 25.01 Exercise 25-02 Exercise 25-03 Review 25-02 cise 25.01.(Video) 25-02. (Video) Exercise 25-05 Exercise 25-06 Exer 25-02 Review 25.04 ise 25.00 (Video em 250 eart Level Exercise 25-01 (Video) Oriole 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 rund). The new truck would cost $55,440. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,700. At the end of 8 years, the company will sell the truck for an estimated $27,500. 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 fe. 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%. Click here to view Py table. en Shot 06.39 AM Compute the cash payback period and net present value of the proposed investment. (at the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses (45). Round answer for present value to decimal places, 125. Round answer for Payback period to I decimal place, .g. 10.5. For calculation purposes, es decimal places as displayed in the factor table provided) Cash payback period years Net present valve Results by Study (b) Does the project meet the company's cash payback criteria NO Does it meet the net present value criteria for acceptance! Yes Click if you would like to Show Work for this questioni Open Show. Work LINK TO TEXT LINK TO TEXT VICOL SIHILARI