Carson Trucking is considering whether to expand its regional
service center in Moab, Utah. The expansion requires the
expenditure of $10,000,000 on new service equipment and would
generate annual net cash inflows from reduced costs of operations
equal to $2,500,000 per year for each of the next eight years. In
Year 8 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 8 the investment cash inflow totals $3,500,000. Calculate the
project’s NPV using each of the following discount rates:
a. 9 percent
b. 11 percent
c. 13 percent
d. 15 percent












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