Carson Trucking is considering whether to expand its regional
service center in Mohab, UT. The expansion requires the
expenditure of $10,500,000 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 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 $1.2 million. Thus,
in year 9 the...