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co dhe two bodistes de premier buldig en hecho PAN wa sem you. The . Newt as com not to building the top. The two

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co dhe two bodistes de premier buldig en hecho PAN wa sem you. The . Newt as com not to building the top. The two balding the chance www You run a construction firm. You have just won a contract to build a government office building. It will take one year to construct it requiring an investment of $9.13 million today and $5.00 million in one year. The government will pay you $21.00 million upon the building's completion. Suppose the each flows and their times of payment are certain, and the risk-free interest rate is 9% a. What is the NPV of this opportunity? b. How can you firm turn this NPV into cash today The firm can borrow_today, and pay it back with 9% interest using the ____ it will receive from the government. The firm can use of the to cover its costs today and save in the bank earn 9% interest to cover its cost of next year. This leaves - in cash for the firm today

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