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