Economic Life The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values aer tax adjustments for the truck are given below. The company's cost of capital is 6 percent. Year Annual Operating Cash Flow Salvage Value 0 -$22,500 $22,500 1 5,250 12,500 2 5,250 14,000 3 5,250 11,000 4 5,250 5,000 5 5,250 0 a. What is the optimal number of years to operate the truck? Do not round intermediate calculations. Round your answers to the nearest whole number. years b. Would the introduction of salvage values, in addition to operating cash ows, ever reduce the expected NP'i.ur andjor IRR of a project? I. Salvage possibilities would have no effect on NW and IRR. II. No. Salvage possibilities could only raise NW and IRR. III. Yes. Salvage possibilities could only lower NP'iiII and IRR