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You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $9.9
You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $9.9 million today and $5.2 million in one year. The government will pay you $20.4 million in one year upon the building's completion. Suppose the interest rate is 10.1%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today
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