Hi,

I need help with the following

I used the below formula

Step 1) The initial investment is $10,500,000.

Step 2) The annual net cash inflows are $3,500,000 per year for 9 years.

Step 3) In year 9 there is an additional cash inflow of $1,000,000 for salvage value.

Step 4) Using a 10% discount rate, the present values of the cash flows are:

Initial investment: -$10,500,000 Year 1: $3,500,000 / 1.1 = $3,181,818 Year 2: $3,500,000 / 1.1^2 = $2,901,654 Year 3: $3,500,000 / 1.1^3 = $2,638,318 Year 4: $3,500,000 / 1.1^4 = $2,390,752 Year 5: $3,500,000 / 1.1^5 = $2,158,866 Year 6: $3,500,000 / 1.1^6 = $1,941,330 Year 7: $3,500,000 / 1.1^7 = $1,737,473 Year 8: $3,500,000 / 1.1^8 = $1,545,825 Year 9: $4,500,000 / 1.1^9 = $2,720,201

NPV = - $10,500,000 + $3,181,818 + $2,901,654 + $2,638,318 + $2,390,752 + $2,158,866 + $1,941,330 + $1,737,473 + $1,545,825 + $2,720,201 = $545,452

The answer is not correct $ 545,452 What did I miss?

(Net present value calculation) 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 $3,500,000 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 million. Thus, in year 9 the investment cash inflow totals $4,500,000. Calculate the project's NPV using a discount rate of 10 percent. If the discount rate is 10 percent, then the project's NPV is q (Round to the nearest dollar.)