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Carson trucking is considering whether to expand its regional service center in Mohab, UT . The expansion rewuires the expenditure of $ 9 , 5

Carson trucking is considering whether to expand its regional service center in Mohab, UT. The expansion rewuires the expenditure of $9,500,000 on new service equipment and would generate annual 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 will also get back a cash flow equal to the salvage value of the equipment, which is valued at $1 million. Thus, in yeah 6 the investment cash inflow totals $3,000,000. Calculate the project's NVP using a discount of 7 percent.

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