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THANK YOU!! (Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure

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THANK YOU!!

(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 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 7 percent. If the discount rate is 7 percent, then the project's NPV is $ (Round to the nearest dollar.) (Related to Checkpoint 11.4) (IRR calculation) Determine the internal rate of return on the following project: An initial outlay of $9,000 resulting in a cash inflow of $1,600 at the end of year 1, $5,200 at the end of year 2, and $7,500 at the end of year 3. This project's internal rate of return is %. (Round to two decimal places.)

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