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A local government awards a landscaping company a contract worth $1.20 million per year for five years for maintaining public parks. The landscaping company will

A local government awards a landscaping company a contract worth $1.20 million per year for five years for maintaining public parks. The landscaping company will need to buy some new machinery before they can take on the contract. If the cost of capital is 8%, what is the most that this equipment could cost if the contract is to be worthwhile for the landscaping company?

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