21. You have just been offered a contract worth $2 million per year for five years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 15%. You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and not have a negative NPV?

After 20 years, the gold will be depleted. The mine must then be stabilized on an ongoing basis, which will cost $5 million per year in perpetuity. Calculate the IRR of this investment. (Hint: Plot the NPV as a function of the discount rate.)