You have just been offered a contract worth 109 million per


You have just been offered a contract worth $1.09 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 12.2%. 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 12.2% annual return is million.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You have just been offered a contract worth 109 million per
Reference No:- TGS02299966

Expected delivery within 24 Hours