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Calculate the project NPV using a discount rate

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Question - Carson Trucking is considering whether to expand its regional service center in? Mohab, UT.  The expansion requires the expenditure of ?$9,500,000 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 ?$0.8 million. Thus, in year 6 the investment cash inflow totals ?$4,300,000. Calculate the? project's NPV using a discount rate of 6 percent.

Reference no: EM133049377

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