Calculate the? project npv using a discount rate

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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 ?$9,000,000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to ?$4,000,000 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 ?$1.1 million. ? Thus, in year 9 the investment cash inflow totals ?$5,100,000.

Calculate the? project's NPV using a discount rate of 8 percent.

Reference no: EM133160791

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