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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 $

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 9.7 million today and $ 5.5 million in one year. The government will pay you $ 21.5 million in one year upon the? building's completion. Suppose the interest rate is 10.7 %.

a. What is the NPV of this? opportunity? $ million (Round two decimal places)

b. How can your firm turn this NPV into cash? today?

A.The firm can borrow $ 19.42 million today and pay it back with 10.7 % interest using the $ 21.5 million it will receive from the government.

B.The firm can borrow $ 24.39 million today and pay it back with10.7 %interest using the $ 21.5 million it will receive from the government.

C.The firm can borrow $ 15.2 million today and pay it back with 10.7 % interest using the $19.42 million it will receive from the government.

D.The firm can borrow $ 15.2 million today and pay it back with 10.7% interest using the $21.5million it will receive from the government.

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