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Score: 0 of 4 pts P11-2 (similar to) 14 of 15 (12 complete) HW Score: 84%, 42 of 50 pts Question Help (Net present
Score: 0 of 4 pts P11-2 (similar to) 14 of 15 (12 complete) HW Score: 84%, 42 of 50 pts Question Help (Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $11,000,000 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 7 years. In year 7 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 7 the investment cash inflow totals $4,600,000. 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 $ (Round to the nearest dollar.)
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