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Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $9500000 on new service equipment
Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $9500000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to $3,000000 per year for each of the next 9 years. In year the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $0.9 million Thus, in year 9 the investment cash inflow totals $3,900,000. Calculate the project's NPV using a discount rate of 10 percent
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