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Solve project npv using discount rate of eight percent

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Reference no: EM132944117

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 ?$4,000,000 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 ?$4,900,000. Calculate the? project's NPV using a discount rate of 8 percent.

Reference no: EM132944117

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