Question: (Net prasent value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab. UT. The expansion requires the expenditure of $10,500,000
(Net prasent value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab. UT. The expansion requires the expenditure of $10,500,000 on new serice equipment and would generate annual net cash inflows from reduced costs of operations equal fo $4,000.000 per year for each of the next 6 years. In year 6 the firm will also get back a cash flow equal to the sakage value of the equiprnent, which is valued at 51.2 million. Thus, in year 6 the investment cash infios sntals 55.200,000. Calculate the projecrs NPV using a discount rate of b percent. If the drexunt rate is 8 percent, then the projects NPV is 1 (Round to the nearest dollar.)
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