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Question $1$ of $3$

$\frac{2\mathrm{.}25}{3}$

Crane Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current trua $($not the least of which is that it runs$).$ The new truck would cost $$57,270.$ Because of the increased capacity reduced maintenance costs, and increased fuel economy, the now truck is eppected to senerate cost savings of $B$,300.$ At the end of $8$ years, the comparm will sell the truck for an estimated $$28,500.$ Traditionally the compary has used a rule of thumb that a proposal should not be accerp unless thas a payback period that is less than SO$\%$ of the asset's estimated useful life Larny Newton a new manager, has sumestec 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 compenv's cost of caspital is $8\%.$

Cickchere to view PV table.

$($a$)$

Compunt the casti, paytack period and net present value of the proposed investment, $($if the net present value is ngyothe use ofither a

Caihpavtack perlod $$ vears

$$