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Carson trucking is considering whether to expand its regional service center in Utah. The expansion requires the expenditure of $10,500,000 on new service equipment and

Carson trucking is considering whether to expand its regional service center in Utah. The expansion requires the expenditure of $10,500,000 on new service equipment and will generate annual net cash inflows from reduce cost of operations equal to 3 million per year for each of the next seven years. in your seven 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 seven the investment cash inflow totals $4,000,000. Calculate the projects and PV using a discount rate of 6%

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