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X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2
X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2 costs $56,000. The useful life of both is seven years, with the following estimated operating cash flows: Year 1 2 3 4 Truck 1 Truck 2 $-6,000 $-7,000 -8,000 -4,000 -8,000 -3,000 -8,000 -3,000 -6,000 -3,000 -5,000 -2,000 -4,000 -2,000 5 6 7 If X Company chooses Truck 2 instead of Truck 1, what is the payback period (in years)
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