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You run a construction firm. You have just won a contract to build a government office...

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 10.2$10.2 million today and $ 5.4$5.4 million in one year. The government will pay you $ 21.4$21.4 million in one year upon the​ building's completion. Suppose the interest rate is 10.2 %10.2%. a. What is the NPV of this​ opportunity? b. How can your firm turn this NPV into cash​ today?

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jeff jeffy answered 1 year ago
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