Carson Trucking is considering whether to expand its regional service center in Moab, Utah. The expansion will require the expenditure of $9,500,000 on new service equipment and will generate annual net cash inflows from reduced costs of operations equal to $2,500,000 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 $1.1 million. Thus, in year 9, the investment cash inflow will total $3,600,000. Calculate the project's NPV using a discount rate of 11 percent.
Question:
If the discount rate is 11 percent, then the project's NPV is
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