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You run a construction firm. You have just won a contract to construct a government office building Construct it will ta
Posted: Tue Nov 16, 2021 7:57 am
by answerhappygod
- You Run A Construction Firm You Have Just Won A Contract To Construct A Government Office Building Construct It Will Ta 1 (12.48 KiB) Viewed 90 times
You run a construction firm. You have just won a contract to construct a government office building Construct it will take one year and require an investment of $10.5 million today and $6 million in one year. The government will pay you $ 24 million upon the building's completion. Suppose the cash flows and their times of payment are certain, and the cost of capital is 10%. What is the NPV of this investment opportunity? And how can your firm turn this NPV into cash today?