What is the most you can pay for equipment and still have


Problem

You have just been offered a contract worth $122 million per year for 6 years. However, to lake 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?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: What is the most you can pay for equipment and still have
Reference No:- TGS03337304

Expected delivery within 24 Hours