You have just been offered a contract worth $1.16 million per year for 6 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 still have a positive NPV? The most you can pay for the equipment and achieve the 11.6% annual return is $ million. (Round to two decimal places.)

Answer rating: 100% (QA)

To determine the maximum amount you can pay for the equipment while still achieving a positive Net P... View the full answer