You have just been offered a contract worth $1.28 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 12.6%. 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?

Select one:

a. $6.71 million

b. $7.68 million

c. $5.17 million

d. $3.49 million