Question
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
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 $5.1 million in one year. The government will pay you $21.6 million in one year upon the building's completion. Suppose the interest rate is 10.6%.
a. What is the NPV of this opportunity?
The NPV of the proposal is $_______ million.(Round to two decimal places.)
b. How can your firm turn this NPV into cash today?
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Health Care Finance Economics And Policy For Nurses
Authors: Betty Rambur
2nd Edition
0826152538, 978-0826152534
