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You run a construction firm You have just won a contract to construct a government office building Constructing it will take one year and

You run a construction firm. You have just won a contract to construct a government office building. Constructing it will take one year and require an investment of $9.78 million today and $5 million in one year. The government will pay you $22.5 million upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 11%. What is the NPV of this opportunity?

Feb 08 2020 View more View Less

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