Business, 24.06.2020 21:01 tiekert

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 9.7 million today and $ 5.2 million in one year. The government will pay you $ 20.6 million in one year upon theâ building's completion. Suppose the interest rate is 10.2 %. Required:
a. What is the NPV of this opportunity?
b. How can your firm turn this NPV into cash today?

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You run a construction firm. You have just won a contract to build a government office complex. Buil...