(Net present value calculation)Carson Trucking is considering whether to expand its regional service center in...
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(Net present value calculation)Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $9,500,000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to $2,000,000 per year for each of the next 9 years. In year 9 the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $1 million. Thus, in year 9 the investment cash inflow totals $3,000,000. Calculate the project's NPV using a discount rate of 10 percent.
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