You run a construction firm. You have just won a contract to build a government office building. It will take one year to construct it requiring an investment of $ 10.43 million today and $5.00 million in one year. The government will pay you $24.00 million upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 11%.

a. What is the NPV of this opportunity?

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

id a guvernient office buiding. It wil lake one ye YuL run a construcKin firm. You naveusi won a con rac ID Uuld governmen office uu dng. wil uke one year o consuuslil e uring an i eslmen of S10 43 "lion ada Suspuse lhe cash ngws and Iheir litres of payment are certain, and lhe nek-ree inierest rate is 11%. a. Vhat is lhe NPV of this opportunity? b. How can your firn turn this NPV into cash tedsy? and 5.0 milion n Dne year. The go er imeril wil ua Du S24 0 milion he ulding s rnule on or