Net present value? calculation-carson trucking

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?(Net present value? calculation)

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 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 ?$0.9 million. ? Thus, in year 7 the investment cash inflow totals ?$3,900,000. Calculate the? project's NPV using a discount rate of 7 percent.

If the discount rate is 7 ?percent, then the? project's NPVis ?_____________?(Round to the nearest? dollar.)

Reference no: EM133058263

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