Carson Trucking is considering whether to expand its regional service center in? Mohab, UT. The expansion...

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Carson Trucking is considering whether to expand its regionalservice center in? Mohab, UT. The expansion requires theexpenditure of $10,500,000 on new service equipment and wouldgenerate annual net cash inflows from reduced costs of operationsequal to $4,000,000 per year for each of the next 7 years. In year7 the firm will also get back a cash flow equal to the salvagevalue of the? equipment, which is valued at $1.1 million. ? Thus,in year 7 the investment cash inflow totals $5,100,000. Calculatethe? project's NPV using a discount rate of 7 percent.
If the discount rate is 7 percent, then the? project's NPV is $___

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ANSWERGiven data expenditure offirst year 10500000for each of the next 7 years annual net cash inflows 4000000investment cash inflow totals See Answer

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