The answer is A, if you could please show every step (with formulas) of how to gwt there that would be great!

8 Allyson, CFO for Gomez Inc., recently purchased a new delivery truck. The new truck costs $70,000, and is expected to generate net after-tax operating cash flows, including depreciation, of $25,000 per year for the 4 years that the firm is thinking about keeping it. The expected year-end abandonment values (salvage value net of tax on the sale) for the truck are given below. The company's cost of capital is 11 percent. What is the optimal economic life? YEAR Abandonment Value ON ml Cash Flow - 70,000 25,000 25,000 25,000 25,000 66,000 60,000 52,000 34,000 NPV is highest in 1 year @ The EAA method confirms that the economic life is 1 year. b. The EAA method confirms that the economic life is 2 year. C. The EAA method confirms that the economic life is 3 year. d. The EAA method confirms that the economic life is 4 year. e. None of the above. year I NOV = (year OFF + (year DCF + year 1CF/1 + 1) +(year 1AV/11.11