(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

$2,000,000

per year for each of the next

6

years. In year

6

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

6

the investment cash inflow totals

$2,900,000.

Calculate the project's NPV using a discount rate of

8

percent.

Question content area bottom

Part 1

If the discount rate is

8

percent, then the project's NPV is

$enter your response here.

(Round to the nearest dollar.)