Question
You have just been offered a contract worth $ 1.23 million per year for 6 years. However, to take the contract, you will need to
You have just been offered a contract worth
$ 1.23
million per year for
6
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?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
7th Edition
0321122356, 978-0321122353
