Question: (Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $11,000,000

 (Net present value calculation) Carson Trucking is considering whether to expand

(Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $11,000,000 an new service equipment and would generate annual net cash inflows from reduced costs of operations equal to $3,500.000 per year for each of the next 5 years. In year 6 the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $0.8 million. Thus, in year is the investment cash inflow totals $4,300,000. Calculate the projects NPV usi using a discount rate of at 100 percent. If the discount rate is 10 percent, then the projects NPV is 3 (Round to the neares. dollar. Clear all Check answer Help me solve this View an example Get more help

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