You have just been offered a contract worth $1.03 million per year for 6 years. However, to take contracts, you will need to purchase some new equipment. Your discount rate for this project is 11.5%. 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 11.5% annual return is $___.
