Exercise 25-01 Your answer is partially correct. Try again. Linkin 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 $55.000. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of 38,600. At the end of years, the company will sell the truck for an estimated 522,000. 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 uselife 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 capitalis Ock here to view the factor tre Coroute the cash payback period and net present value of the proposed investment. (If the net present value is negative, use either a negative son preceding the number eg .45 or parentheses eg (45). Round answer for present value to O decimal places,.. 125. Round answer for Payback period to I decimal place, e.o. 10.5. Fer calculation purposes use 5 decimal places as displayed in the factor table provided.) Cath payback period Net present Valve Does the project meet the company's cash paytack criteria? Does i t net present venter for acceptance? BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below Machines S183.000 Machine A Original cost $74,100 Estimated 8 years Salvage value Estimated annual cash nows $20,500 Estimated annual cash outhows 4,850 $39.500 $10.020 che view the totale Calculate the net present value and profitability index of each machine. Assume a discount rate. If the nel present value is negative, use either a negative in preceding the number e-45 or parentheses eg (45). Round answer for present value to decimal places, and profitability index to 2 decimal places. e. 10.50. For calculation purposes use 5 decimal places as displayed in the factor table provided) Machine Machine Net present value Drontability index which machine sobe purchased Click If you would like to show Work for this questions Open work