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hw8 2) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $10500000 on new

hw8

2) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $10500000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to $4000000 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 9 year the investment cash inflow totals $5000000. Calculate the project's NPV using a discount rate of 7 percent. If the discount rate is 7 percent, then the project's NPV is $ ______ enter your response here

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