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E Your answer is partially correct. 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 $56,440. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,300. At the end of 8 years, the company will sell the truck for an estin ated $27,200. Traditionally the company has used a rule of thump that a proposal should not be accepted unless it has a payback period that is less than 50% of the asset's sestimated 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%. Clickhere toview the factor table. (a) Compute the cash payback period and net present value of the proposed investment. If the net present value is negative use either a negative sign preceding the number es45 or porentheses eg (45). Round answer for present value to O decimal ploces, es. 125, Round onswer for Poyback period to 1 decimol place, es. 10.5. For calculation purposes, use 5 decimal places as disployed in the factor table provided) Cash paybackperiod

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