You have just been offered a contract worth $1.15 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 12.1%. 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 12.1% annual return is $ million. (Round to two decimal places.)

You have just been offered a contract worth $1.15 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 12.1%. 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 12.1% annual return is $ million. (Round to two decimal places.)

Name: You have just been offered a contract worth $1.15 million per year fo
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Description: You have just been offered a contract worth $1.15 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 is12.1%. You are still negotiating the purchase price of

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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