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 $ 10.2 million today and $ 4.8 million in one year. The government will pay you $ 20.9 million in one year upon the building's completion. Suppose the interest rate is 10.1 %
a. What is the NPV of this opportunity?
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese
6th Edition
978-1506396811, 150639681X
