Current Attempt in Progress Bonita Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current (not the least of which is that it runs). The new truck would cost $55,774. Because of the increased capacity, reduced maintenar costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,900 : At the end of eight years, the company will sell the truck for an estimated $27,800. Traditionally, the company has used a general rule that it should not accepi proposal unless it has a payback period that is less than 50% of the asset's estimated useful life. Robert Jones, a new manager, ha suggested that the company should not rely only on the payback approach but should also use the net present value method whe evaluating new projects. The company's cost of capital is 8%. Current Attempt in Progress Splish Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost \$469,000, has an expected usefullife of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by $73,000. Project B will cost$308,000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by $50.000. A discount rate of 9% is appropriate for both projects