X Company must purchase a new delivery truck and is using the payback method to evaluate...

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X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2 costs $38,000. The useful life of both is seven years, with the following estimated operating cash flows: Year Truck 1 Truck 2 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 -6,000 -3,000 6. -5,000 -2,000 7 -4,000 -2,000 If X Company chooses Truck 2 instead of Truck 1, what is the payback period (in years)? X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $35,000; Truck 2 costs $38,000. The useful life of both is seven years, with the following estimated operating cash flows: Year Truck 1 Truck 2 1 $-6,000 $-7,000 2 -8,000 -4,000 3 -8,000 -3,000 4 -8,000 -3,000 -6,000 -3,000 6. -5,000 -2,000 7 -4,000 -2,000 If X Company chooses Truck 2 instead of Truck 1, what is the payback period (in years)?

Answer rating: 100% (QA)

my solution is given as shown below Year Truck 1 Truck 2 Marg... View the full answer