Question: Excel Project and Excel Solution You run a construction firm. You have just won a contract to build a government office building. Building it will

Excel Project and Excel Solution You run a construction firm. You have just won a contract
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
the buildings completion. Suppose the cash flows and their times of payment are certain, and
the risk-free interest rate is 10%.
a. What is the NPV of this opportunity?
b. How can your firm turn this NPV into cash today?

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