(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 $3,500,000 per year for each of the next 6 years. In year 6 the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $1.1 million. Thus, in year 6 the investment cash inflow totals $4,600,000. Calculate the project's NPV using a discount rate of 8 percent.

(Net present value calculation) Carson Trucking is considering whether to expand its regional servioe certer in Mohab, UT. The expansion requires the expenditure of $9,500,000 on new service equipment and would generate annual net cash infloss from feduced costs of operations equal to $3,500,000 per year for each of the noxt 6 years. In yoar 6 the firm will also get back a cash flow equal to the salvage value of the equipment, which is valuod at $1.1 million. Thus, in year 6 the irvestment cash infow totals $4,600,000. Calculate the projects NPV using a discount rate of 8 percent