University Of Arkansas At Monticello Operations And Supply Chain Management Assignment Help - NPV

Question - (Net present value calculation) Carson Trucking is considering whether to expand its
regional service center in Mohab, UT. The expansion requires the expenditure of
$9,500,000 on new service equipment and would generate annual net cash inflows
from reduced costs of operations equal to $3,000,000 per year for each of the next six
years. In year six the firm will also get back a cash flow equal to the salvage value of
the equipment which is valued at $1.1 million. Thus, in year six the investment cash
inflow totals $4,100,000. Calculate the project's NPV using each of the following
discount rates: 6%

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