Abandonment option The Scampini Supplies Company recently purchased a new delivery truck. The new truck costs $22,500, and it is expected to generate after-tax cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected year-end abandonment values (salvage values after tax adjustments) for the truck are given below. The company's WACC is 10% Year Annual After-Tax Abandonment Cash Value Flow 0 $-22,500 6,250 6,250 6,250 6,250 6,250 $17,500 14,000 11,000 5,000 a. What is the truck's optimal economic life? year(s) b. Would the introduction of abandonment values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project? -Select- Explain