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( Net present value calculation ) Carson Trucking is considering whether to expand its regional service center in Mohab, UT . The expansion requires the
Net present value calculation Carson Trucking is considering whether to expand its regional service center in Mohab, UT The expansion requires the expenditure of $ on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to $ per year for each of the next years. In year the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $ million. Thus, in year the investment cash inflow totals $ Calculate the project's NPV using a discount rate of percent.
If the discount rate is percent, then the project's NPV is $
Round to the nearest dollar.
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