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please solve the following questions: Your factory has been offered a contract to produce a part for a new printer. The contract would last for

please solve the following questions:

image text in transcribedimage text in transcribed Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $5.24 million per year. Your upfront setup costs to be ready to produce the part would be $7.78 million. Your discount rate for this contract is 8.4%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is $ million. (Round to two decimal places.) 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 $5.1 million in one year. The government will pay you $21.4 million in one year upon the building's completion. Suppose the interest rate is 10.4%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today? a. What is the NPV of this opportunity? The NPV of the proposal is $ million. (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select the best choice below.) A. The firm can borrow $14.8 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. B. The firm can borrow $24.00 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. C. The firm can borrow $19.38 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. D. The firm can borrow $14.8 million today and pay it back with 10.4% interest using the $19.38 million it will receive from the government. Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $5.24 million per year. Your upfront setup costs to be ready to produce the part would be $7.78 million. Your discount rate for this contract is 8.4%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is $ million. (Round to two decimal places.) 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 $5.1 million in one year. The government will pay you $21.4 million in one year upon the building's completion. Suppose the interest rate is 10.4%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today? a. What is the NPV of this opportunity? The NPV of the proposal is $ million. (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select the best choice below.) A. The firm can borrow $14.8 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. B. The firm can borrow $24.00 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. C. The firm can borrow $19.38 million today and pay it back with 10.4% interest using the $21.4 million it will receive from the government. D. The firm can borrow $14.8 million today and pay it back with 10.4% interest using the $19.38 million it will receive from the government

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