The Scampini Supplies Company recently purchased a new delivery truck. The new truck has an after$-$tax cost of $$22,500,$ and it is expected to generate after$-$tax cash flows of $$6,750$ 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 $9\%.$

After$-$Tax

Year Annual After$-$Tax Cash Flow Abandonment Value

$0($$$22,500)-$

$16,750$ $$17,500$

$26,75013,000$

$36,75011,000$

$46,7507,000$

$56,7500$

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

year$($s$)$

Would the introduction of abandonment values, in addition to operating cash flows, ever reduce the expected NPV and$/$or IRR of a project?

$-$Select$-$