Please help within the hour! 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\mathrm{.}4$ million today and

$$5\mathrm{.}4$ million in one year. The government will pay you $$20\mathrm{.}7$ million in one year

upon the building's completion. Suppose the interest rate is $10\mathrm{.}2\%.$

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 $$18\mathrm{.}78$ million today and pay it back with $10\mathrm{.}2\%$

interest using the $$20\mathrm{.}7$ million it will receive from the government.

B$.$ The firm can borrow $$15\mathrm{.}8$ million today and pay it back with $10\mathrm{.}2\%$

interest using the $$20\mathrm{.}7$ million it will receive from the government.

C$.$ The firm can borrow $$15\mathrm{.}8$ million today and pay it back with $10\mathrm{.}2\%$

interest using the $$18\mathrm{.}78$ million it will receive from the government.

D$.$ The firm can borrow $$23\mathrm{.}68$ million today and pay it back with $10\mathrm{.}2\%$

interest using the $$20\mathrm{.}7$ million it will receive from the government.

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ $10\mathrm{.}4$ million today and $ $5\mathrm{.}4$ million in one year. The government will pay you $ $20\mathrm{.}7$ million in one year upon the$$ building's completion. Suppose the interest rate is $10\mathrm{.}2\%.$

a$.$ What is the NPV of this$$ opportunity?

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

Question content area bottom

Part $1$

a$.$ What is the NPV of this$$ opportunity?

The NPV of the proposal is $$$

$$

enter your response here million.$($Round to two decimal$$ places.$)$

Part $2$

b$.$ How can your firm turn this NPV into cash$$ today?$($Select the best choice$$ below.$)$

A$.$

The firm can borrow $ $18\mathrm{.}78$ million today and pay it back with $10\mathrm{.}2\%$ interest using the $ $20\mathrm{.}7$ million it will receive from the government.

B$.$

The firm can borrow $ $15\mathrm{.}8$ million today and pay it back with $10\mathrm{.}2\%$ interest using the $ $20\mathrm{.}7$ million it will receive from the government.

C$.$

The firm can borrow $ $15\mathrm{.}8$ million today and pay it back with $10\mathrm{.}2\%$ interest using the $ $18\mathrm{.}78$ million it will receive from the government.

D$.$

The firm can borrow $ $23\mathrm{.}68$ million today and pay it back with $10\mathrm{.}2\%$ interest using the $ $20\mathrm{.}7$ million it will receive from the government.