Question
Using the NPV bid price method, a construction firm submits a bid to build an apartment building, wins the bid, and proceeds to complete the
Using the NPV bid price method, a construction firm submits a bid to build an apartment building, wins the bid, and proceeds to complete the building. After the project is completed, the company's CFO is puzzled by the fact that the company lost money on the project. If the CFO used the correct method for calculating the NPV bid price , how could this have happened?
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Financial Valuation
Authors: James R. Hitchner
4th Edition
1119286603, 978-1119286608
