Also answer does the project meet cash payback criteria or net present value criteria ?

Sheridan 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 555,695 . Because of the increased capacity, reduced maintenance costs, and increased fucl economy, the new truck is expected to generate cost sivings of $7.900. At the end of eight years, the company will sell the truck for an estimated $27,500. Traditionally, 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 useful life. James Johnson, 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 evaluatingnew projects. The company's cost of capital is 8%. (a) Calculate the cash payback period and net present value of the proposed investment. (ff the net present value is negative, use either a negutive sign preceding the number eg, 45 or parentheses es. (45). Round cash paybock period to 2 decimal ploce, es. 12.51. For calculation purposes, use 5 decimal ploces as displayed in the factor toble provided, es. 1.25124 and net present value to 0 decimol places, es. 5,275 ) Click here to view the factor table