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You run a construction firm. You have just won a contract to build a government office complex. Buliding it will require an investment of $10.3

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You run a construction firm. You have just won a contract to build a government office complex. Buliding it will require an investment of $10.3 million today and $4.6 million in one year. The govemment will pay you $21.8 million in one year upon the bullding's completion. Suppose the interest rate is 10.8%. 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 3 milion. (Fyund to two decimal places)

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