Question
. You run a construction firm. You have just won a contact to build a government office building. Building it will require an investment of
. You run a construction firm. You have just won a contact to build a government office building. Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon completion. Suppose the interest rate is 10%.
a. What is the NVP of this opportunity?
b. How can your firm this NVP into cash today
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College Mathematics For Business Economics, Life Sciences, And Social Sciences
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
14th Edition
0134674146, 978-0134674148
