You have just been offered a contract worth $1.01 million per year for seven years. However, to

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You have just been offered a contract worth $1.01 million per year for seven years.

However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 11.6%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and not have a negative NPV?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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