Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of

$9,000,000

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

9

years. In year

9

the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at

$1.1

million. Thus, in year

9

the investment cash inflow totals

$3,100,000.

Calculate the project's NPV using a discount rate of

10

percent.