Question: (Net present value calculation) Carson Trucking is considering whether to expand is regional service center in Mohab, UT. The expansion requires the expenditure of $9,500,000
(Net present value calculation) Carson Trucking is considering whether to expand is regional service center in Mohab, UT. The expansion requires the expenditure of $9,500,000 on new service equipment and would gonerate annuat net cash inflows from reduced costs of operations equal to $2,000,000 per year for each of the next 6 years. In year 6 the firm witt also get back a cash flow equal to the salvage value of the equipment, which is valued at $0.9 millon. Thus, in year 6 the investment cash inflow totals $2,900,000. Calculate the projecto NPV using a discount rate of 6 percert. If the discount rate is 6 percent, then the project's NPV is : (Round to the nearest dolioe)
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