Calculate the? project net present value

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Question - 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 ?$3,000,000 per year for each of the next 9 years. In year 9 the firm will also get back a cash flow equal to the salvage value of the? equipment, which is valued at $1 million. Thus, in year 9 the investment cash inflow totals ?$4,000,000. Calculate the? project's net present value using a discount rate of 6 percent.

Reference no: EM133161479

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