The Sorensen Supplies Company recently purchased a new delivery truck. The initial cash outflow for the new truck is $24,000, 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%.

Year	Annual After-Tax Cash Flow		Abandonment Value
0	($24,000)			-
1	6,750			$20,000
2	6,750			15,500
3	6,750			12,500
4	6,750			6,500
5	6,750			0

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

   year(s)=

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

   -Select-Yes or No