You run a perpetual encabulator machine, which generates revenues averaging $$29$ million per year. Raw material costs are $60\%$ of revenues. These costs are variable$$they are always proportional to revenues. There are no other operating costs. The cost of capital is $15\%.$ Your firm$$s long$-$term borrowing rate is $12\%.$

Now you are approached by Studebaker Capital Corp., which proposes a fixed$-$price contract to supply raw materials at $$17\mathrm{.}4$ million per year for $8$ years.

b$.$ Calculate the present value of the encabulator machine with and without the fixed$-$price contract. $($Do not round intermediate calculations. Enter your answers in dollars not in millions. Round your answers to the nearest whole dollar

This answer is incorrect: With Contract: PV$=$$$48\mathrm{.}13$ million.$)$