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blossom Corporation is considering purchasing a new delivery truck. The truck has many advantages over...

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Accounting

blossom Corporation is considering purchasing a new delivery truck. The truck has many advantages over the companys current truck (not the least of which is that it runs). The new truck would cost $56,327. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7900. At the end of 8 years the company will sell the truck for an estimated $28100. Traditionally the company has used a rule of should not accpet a proposal unless it has a payback period that is less than 50% of the asset estimated used life kennet garcia a new manager has suggested that the company should not rely only on the playback approach but should also use the net present value method when evaluating new project the company cost of capital is 8%

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