The Scampini Supplies Company recently purchased a new delivery truck. The new truck has an after$-$tax cost of $$20,500,$ and it is expected to generate after$-$tax cash flows of

$$6,500$ per year. The truck has a $5-$year expected life. The expected year$-$end abandonment values $($after$-$tax salvage values$)$ for the truck are given below. The company's WACC is

$12\%.$

a$.$ What is the truck's optimal economic life? Round your answer to the nearest whole number.

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$-$