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Solve project npv using a discount rate of six percent

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Reference no: EM132993363

Problem 1: 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 ?$3,500,000 per year for each of the next 6 years. In year 6 the firm will also get back a cash flow equal to the salvage value of the? equipment, which is valued at ?$1.2 million. ? Thus, in year 6 the investment cash inflow totals ?$4,700,000. Calculate the? project's NPV using a discount rate of 6 percent.

Reference no: EM132993363

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