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 $10.1
You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $10.1 million today and $5.1 million in one year. The government will pay you $20.2 million in one year upon the building's completion. Suppose the interest rate is 10.6%.
a. What is the NPV of this opportunity?
b. How can your firm turn this NPV into cash today?
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The Palgrave Handbook Of Technological Finance
Authors: Raghavendra Rau, Robert Wardrop, Luigi Zingales
1st Edition
3030651169, 978-3030651169
