Padong Corporation is considering purchasing a new deliver 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 $56000. Because of the increased capacity, reducod maintenance costs, and increased fuel economy, the new truck is expected to general cost savings of $8000 . At the end of 8 year the company will sell the truck for an csll mated $30000. 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 csll mated useful life. Kevin McCarthy,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%.