XYZ Company is considering the purchase of a new delivery truck. The truck will cost $40,000 and have useful life of 5 years with a salvage value of S0. The new truck is muc more efficient than the old delivery truck and should save the company annual cash oper expenses of S 12,000. Straight-line depreciation will be used. The income tax rate is 25% XYZ Company's hurdle rate is 10%. PRESENT VALUE TABLES ON PAGE 12. 4. Payback is equal to A. 3.44 ycars B. 3.54 years C. 3.64 years D. 3.74 years 5 The Accounting Rate of Return (ARCR) is equal to A. 10.5% B. 9.5% C. 8.5% D. 7.5% 6. The Net Present Value (NPV) is equal to A. $1,701 B. $1,801 C. $1,901 D. $2,001 7. The Profitability Index (Pl) is equal to A. 94 B. 1.04 C. 1.14 D. 1.24 8. The Internal Rate of Return (IRR) is equal to A 9.7% B. 10.7% D. 12.7%