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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

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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 after tax adjustments for the truck are given below. The company's cost of capital is 10%. a. Should the firm operate the truck until the end year physical life? If not, then what is its optimal economic life? b. Would the introduction of salvage values, in addition to operating cash flows, ever reduces the expected NPV and/or IRR of a project

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