You are still negotiating the purchase price of the


You have just been offered a contract worth $1.25 million per year for 66 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??

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Financial Management: You are still negotiating the purchase price of the
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