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 $
You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 10.0
$10.0 million today and $ 5.0
$5.0 million in one year. The government will pay you $ 20.0
$20.0 million in one year upon thebuilding's completion. Suppose the interest rate is 10.0 %
10.0%.
a. What is the NPV of thisopportunity?
b. How can your firm turn this NPV into cashtoday?
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
