Calculate project npv using a discount rate of seven percent

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Problem 1: 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 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 ?$3,100,000. Calculate the? project's NPV using a discount rate of 7 percent.

Reference no: EM132843726

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