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You are offered a contract worth $2 million per year for five years. However, to take the contract, you will have to purchase some new

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You are offered a contract worth $2 million per year for five years. However, to take the contract, you will have to purchase some new equipment. Your discount rate for this project is 10%. 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? 2

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