You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 9.7$9.7 million today and $ 5.4$5.4 million in one year. The government will pay you $ 21.8$21.8 million in one year upon the? building's completion. Suppose the interest rate is 10.7 %10.7%.
a. What is the NPV of this? opportunity?
b. How can your firm turn this NPV into cash? today?
a. What is the NPV of this? opportunity?