Business
Business, 14.07.2020 02:01, kitam2871

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $10.2 million today and $5.1 million in one year. The government will pay you $21.5 million in one year upon the building's completion. Suppose the interest rate is 10.1%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today? a. What is the NPV of this opportunity? The NPV of the proposal is $ million. (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select the best choice below.) A. The firm can borrow $15.3 million today and pay it back with 10.1% interest using the $21.5 million it will receive from the government. B. The firm can borrow $15.3 million today and pay it back with 10.1% interest using the $19.53 million it will receive from the government. C. The firm can borrow $19.53 million today and pay it back with 10.1% interest using the $21.5 million it will receive from the governmenD. The firm can borrow $24.16 million today and pay it back with 10.1% interest using the $21.5 million it will receive from the governmen

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 19:00, vpoon6739
If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of
Answers: 1
image
Business, 22.06.2019 07:30, nanamath5662
Select the correct answer the smith family adopted a child. the adoption procedure took about three months, and the family incurred various expenses. will the smiths receive and financial benefit for the taxable year? a) they will not receive any financial benefit for adopting the child b) their income tax component will decrease c) they will receive childcare grants d) they will receive a tax credit for the cost borne for adopting the child e) they will receive several tax deductions
Answers: 3
image
Business, 22.06.2019 14:20, nataliaalejandradasi
Jaynet spends $50,000 per year on painting supplies and storage space. she recently received two job offers from a famous marketing firm – one offer was for $95,000 per year, and the other was for $120,000. however, she turned both jobs down to continue a painting career. if jaynet sells 35 paintings per year at a price of $6,000 each: a. what are her accounting profits? b. what are her economic profits?
Answers: 1
image
Business, 22.06.2019 17:00, staffordkimberly
Explain how can you avoid conflict by adjusting
Answers: 1
Do you know the correct answer?
You run a construction firm. You have just won a contract to build a government office complex. Buil...

Questions in other subjects: