(Net present value calculation) Carson Trucking is considering whether to expand UT. The expansion requires the expenditure of $9,000,000 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 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 $0.9 million. Thus, in year 9 the investment cash inflow totals $4,900,000. Calculate the project's NPV using a discount rate of 8 percent. Ceri If the discount rate is 8 percent, then the project's NPV is $ (Round to the nearest dollar.)

(Net present value calculation) Carson Trucking is considering whether to expand UT. The expansion requires the expenditure of $9,000,000 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 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 $0.9 million. Thus, in year 9 the investment cash inflow totals $4,900,000. Calculate the project's NPV using a discount rate of 8 percent. Ceri If the discount rate is 8 percent, then the project's NPV is $ (Round to the nearest dollar.)

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Description: (Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab,UT. The expansion requires the expenditure of $9,000,000 on new service equipment and would generate annual netcash inflows from re

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter26: Capital Budgeting (capbud)

Section: Chapter Questions

Problem 1R

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