You run a construction firm. You have just won a contract to build a government office building. Building it requires an investment of $10.4 million today, and $5.0 million in one year. The government will pay you $24.0 million in one year upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 9%. The NPV of this opportunity is $Answer million.
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Home » Business » You run a construction firm. You have just won a contract to build a government office building. Building it requires an investment of $10.4 million today, and $5.0 million in one year. The government will pay you $24.