What is the nvp of this opportunity

Reference no: EM13834409

You run a construction firm. You have just won a contact to build a government office building. Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon completion. Suppose the interest rate is 10%.

a. What is the NVP of this opportunity?

b. How can your firm this NVP into cash today

Reference no: EM13834409

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