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Negotiating the purchase price of the equipment

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You have just been offered a contract worth $1.15 million per year for 7 years.? However, to take the? contract, you will need to purchase some new equipment. Your discount rate for this project is 12.1%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV??

The most you can pay for the equipment and achieve the 12.1% annual return is ?$____million.

Reference no: EM132909721

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