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

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Finance

You run a construction firm. You have just won a contract tobuild a government office complex. Building it will require aninvestment of $ 9.9 million today and $ 5.1 million in one year.The government will pay you $ 20.9 million in one year upon the?building's completion. Suppose the interest rate is 10.1 %. a. Whatis the NPV of this? opportunity? b. How can your firm turn this NPVinto cash? today?

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You run a construction firm. You have just won a contract tobuild a government office complex. Building it will require aninvestment of $ 9.9 million today and $ 5.1 million in one year.The government will pay you $ 20.9 million in one year upon the?building's completion. Suppose the interest rate is 10.1 %. a. Whatis the NPV of this? opportunity? b. How can your firm turn this NPVinto cash? today?

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