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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 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 million. ? Thus, in year 9 the investment cash inflow totals ?$5,000,000. Calculate the? project's NPV using a discount rate of 7 percent. If the discount rate is 7 ?percent, then the? project's NPV is ?$. ?(Round to the nearest? dollar.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92766196

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