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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 $10.4

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of

$10.4

million today and

$4.7 million in one year. The government will pay you $21.9 million in one year upon the building's completion. Suppose the interest rate is 10.4%.

a. What is the NPV of this opportunity?

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

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