# ACCOUNTING 118 Palo Alto Corporation is considering purchasing a new delivery truck

Exercise 24-1 Palo Alto 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 \$56,130. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of \$7,750. At the end of 8 years the company will sell the truck for an estimated \$27,580. 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 view the factor table.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)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 eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 125. Round answer for Payback period to 1 decimal place, e.g. 10.5.)Cash payback periodyearsNet present value\$Does the project meet the company’s cash payback criteria? YesNoDoes it meet the net present value criteria for acceptance? YesNo

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Essay Fountain
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
The writer delivered as on time with quality work. But writteres communication could of been better and I would have been more content with choosing my own writer as per my assignment.
Customer 452679, March 24th, 2021
WRTG 393 6360 Advanced Technical Writing (2222)WRTG-393
Patience and truly superb service considering all the information was not uploaded.
Customer 452995, February 4th, 2022
Other
Should have been around social worker in the UK but I can adapt it.
Customer 453101, August 5th, 2022
This is fantastic! Thank you so much for your hard work!
Customer 453131, November 16th, 2022
Psychology
Thank you so much!! Very much appreciated!
Customer 452717, April 20th, 2021
Political science
Great paper
Customer 452863, September 11th, 2021
Marketing
Excellent and thank you!
Customer 452591, December 12th, 2020
Sociology
Thank you for following the guidelines of discussion. Awesome! Hopefully the grade will be better than the first 2 discussions submitted. I was fearful when I received an email requesting to send a copy of the book. Please remember that I confirmed whether or not you all had access to the book before I submitted my first request for assistance.
Customer 452919, February 1st, 2023
Sociology
Thank you, this is an 8-week course, so I will be needing your assistance.
Customer 452919, January 20th, 2023
Social Work and Human Services
Thank you for presenting the paper n-time. The team is getting much better. I have used you guys for a at least 4 semesters and will continue throughout my college career.
Customer 452919, February 21st, 2024
Sociology
Thank you!
Customer 452919, April 5th, 2022
Excellent service as always, Thank you!
Customer 452995, January 20th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend