Question
You have just been offered a contract worth $ 1.24$1.24 million per year for 77 years. However, to take the contract, you will need to
You have just been offered a contract worth
$ 1.24$1.24
million per year for
77
years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is
12.1 %12.1%.
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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Fundamentals Of Futures And Options Markets
Authors: John Hull
9th Edition
0134083245, 9780134083247
