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What is the npv of this? opportunity

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Reference no: EM132935512

Question - You run a construction firm. You have just won a contract to build a government office building. It will take one year to construct it requiring an investment of $9.35 million today and $5.00 million in one year. The government will pay you $21.50 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%. 

a. What is the NPV of this? opportunity?

b. How can your firm turn this NPV into cash? today?

Reference no: EM132935512

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