Calculate the NPV of this investment.

To calculate the NPV of this investment, we need to take into account the initial investment, the annual cash flows, and the sale proceeds at the end of the 10 years, and then discount them to the present value using the appropriate discount rate.

1. Initial investment: $12 million ($2.8 million for land + $9.2 million for trucks and other equipment)
2. Annual cash flows: $1.91 million (revenue of $2.03 million – 35% marginal tax)
3. Sale proceeds: $5.16 million (selling price of land, trucks, and other equipment – book value)

Using the above information, we can use the following formula to calculate the NPV:

NPV = (Initial investment + Annual cash flows + Sale proceeds) / (1+r)^n

Where: r = discount rate (9%) n = number of years (10)

NPV = ($12 million + ($1.91 million x 10) + $5.16 million) / (1+0.09)^10

Using a calculator or spreadsheet to evaluate the above formula, we get an NPV of $1.74 million

Since the NPV is positive, this means that the expected cash flows from the project are higher than the cost of the project and it would be a good investment, thus this project should be accepted.