net present value please
Question 6 of 6 2.2573 Sheridan 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 555,610. 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 years, the company will sell the truck for an estimated $27.900. 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% Click here to views PV table {a Compute the cash paytrack period and net present value of the proposed investment of the net present value is negative, use either a negative sign preceding the number -45 or parentheses (45). Round answer for present value to decimal places, es. 125. Round answer for Playback period to 1 decimal place es 10. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Cash payback period year Net present value 3