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You run a construction form. You have just won a contract to build a government office complex. Building it will require an investment of $10.5

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You run a construction form. You have just won a contract to build a government office complex. Building it will require an investment of $10.5 million today and $4.6 million in one year. The government will pay you $21.6 million in one year upon the building's completion. Suppose the interest rate is 10.3%. a. What is the NPV of this opportunity? b. How can your firm Jurn this NPV into cash today? a. What is the NPV of this opportunity? The NPV of the proposal is $7.02 million (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select the best choice below.) O A. The firm can borrow $19.58 million today and pay it back with 10.3% interest using the $216 million it will receive from the government O B. The firm can borrow $15.1 million today and pay it back with 10.3% interest using the $19.58 million it will receive from the government OC. The firm can borrow $15.1 million today and pay it back with 10.3% interest using the $216 milion it will receive from the government O D. The firm can borrow $23.75 million today and pay it back with 10 3% interest using the $216 million it will receive from the government Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,040 at the end of each of the next 3 years The opportunity requires an initial investment of $1,260 plus an additional investment at the end of the second year of $6,300. What is the NPV of this opportunity if the interest rate is 1.7% per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 1.7% per year? The NPV of this gpportunity is S . (Round to the nearest cent.) Should Marian take it? Marian take this opportunity (Select from the drop-down menu)

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