What is the most you can pay for the equipment

Reference no: EM132021622

Question: You have just been offered a contract worth $1.23 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 11.7%. 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 11.7% annual return is $ million. (Round to two decimal places.)

Reference no: EM132021622

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