You have just been offered a contract worth

$ 1.19$1.19

million per year for

55

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

11.6 %11.6%.

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

11.6 %11.6%

annual return is

$nothing

million.(Round to two decimal places.)