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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 service

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 service equipment and would generate annual net cash inflows from reduced costs of operations equal to $ 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 salvage value of the equipment, which is valued at $ 0.9 million.

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