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 $9.8
You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $9.8
million today and $5.5 million in one year. The government will pay you $20.1 million in one year upon the building's completion. Suppose the interest rate is
10.9%.
a. What is the NPV of this opportunity?
b. How can your firm turn this NPV into cash today?
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Multinational Finance Evaluating The Opportunities Costs And Risks Of Multinational Operations
Authors: Kirt C. Butler
6th Edition
111921968X, 978-1119219682
