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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 $ 10.2$10.2 million today and $ 5.4$5.4 million inone year. The government will pay you $ 21.4$21.4 million in oneyear upon the? building's completion. Suppose the interest rate is10.2 %10.2%. a. What is the NPV of this? opportunity? b. How canyour firm turn this NPV into 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 $ 10.2$10.2 million today and $ 5.4$5.4 million inone year. The government will pay you $ 21.4$21.4 million in oneyear upon the? building's completion. Suppose the interest rate is10.2 %10.2%. a. What is the NPV of this? opportunity? b. How canyour firm turn this NPV into cash? today?

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