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You operate a construction firm and have just won a contract to build a government office building. The government will pay you $20 million in
You operate a construction firm and have just won a contract to build a government office building. The government will pay you $20 million in one year upon the building's completion. Construction will take one year and require an investment of $10 million today and $8 million in one year. 1) What is the NPV of this opportunity if the discount rate is 10%? 2) What is the IRR of this opportunity
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