2 Ahondament option The Scampini Supplies Company recently purchased a new delivery truck. The new track costs $20,000, and it is expected to generate after-tax cash flows, including depreciation of $10,000 per year. The truck has a 5 year expected life. The expected year-end abandonmeat value (salvage values after tax adjustments) for the truck are given here. The company's WACC is 10 percent. Year Abandonment Value Annual After Tax Cash Flow ($20.000) 10.000 10.000 10.000 10,000 10,000 $15.000 10,000 55,000 Should the firm operate the truck until the end of its 5-year physical life, if not, what is the optimal cconomic life? Would the introdoction of abandonment value, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project? Explain