What is the most you can pay for the equipment

Reference no: EM132019978

Question: You have just been offered a contract worth $1.15 million per year for 5 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. (Round to two decimal places.)

Reference no: EM132019978

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