Problem 1: You run a construction firm. You have just won a contract to build...
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Problem 1: You run a construction firm. You have just won a contract to build a government office building. Building it will require an investment of S10 million today and S5 million in one year. The government will pay you $20 million in one year upon the building's c cash flows and their times of payment are certain, and the risk-free interest rate is 10%. ompletion. Suppose the a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today
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