What is the most amount of money you would consider to spend

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You're considering making an investment in a project that will generate $1,000,000 per year indefinitely. To finance this project you will be using a combination of both bonds and stocks. 60% of your financing needs will be in the form of bonds at a rate of 5%, and the remaining 40% will be issued in the form of stocks at a rate of 12%. What is the most amount of money you would consider to spend for this project (to receive a return of $1,000,000 per year, indefinitely.

Reference no: EM131569586

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