Calculate the? projects npv using a discount rate

Reference no: EM133715797

Question: 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 $4,000,000 per year for each of the next 7 years. In year 7the 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 $5,100,000.

Calculate the? project's NPV using a discount rate of 6 percent.

Reference no: EM133715797

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