Tools Window Help Ph 42 PM 0 0 . Edit View Hory Books x 1 Buxo Comparis considering 9 x x Com 34-Pur + O ns wyne du c o dulehemid217514 Becordings book Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck Inot the least of which is that it runs. The new truck would cost $55.440. Because of the increased capacity.reduced maintenance costs, and increased fuel economy. the new truck is expected to generate cost savings of $7.700. At the end of years, the company will sell the truck for an estimated $27.500. 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 useful life. 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 capital is 8%. esources - Campus valuation Click here to view the factor table Compute the cash payback period and net present value of the proposed investment. If the nel present value is negative use either a negative sin preceding the numbers -45 or parentheses ex 145Round answer for present value to decimal places . 125. Round answer for Payback period to 1 decimal places 10 5. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Cash payback period Net present values 1.48M2020-. 1