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You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $10.5
You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $10.5 million today and $5.1 million in one year. The government will pay you $20.2 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 N 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 $18.30 million today and pay it back with 10.4% interest using the $20.2 million it will receive from the government. B. The firm can borrow $15.6 million today and pay it back with 10.4% interest using the $20.2 million it will receive from the government. C. The firm can borrow $15.6 million today and pay it back with 10.4% interest using the $18.30 million it w
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