You have just been offered a contract worth

$1.03

million per year for

7

years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is

12.3%.

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

12.3%

annual return is

$enter your response here

million.(Round to two decimal places.)