RadioheadIncpurchased a new plastic tree making plant. The new truck cost $30,000, and it is expected to generate net after-tax operating cash flows, including depreciation, of $8,500 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given below. The company's cost of capital is 12%.What istheproject's optimal economic life?

YearAnnual Operating Cash FlowSalvage Value0($30,000)$30,00018,50025,00028,50021,50038,50015,00048,5007,00058,5000

1 year4 years5 years2 years3 years