![heart80941](/avatars/39060.jpg)
heart80941
01.10.2019 •
Business
3. you run a construction firm. you have just won a contract to construct a government office building. it will take one year to construct it, requiring an investment of $10 million today and $5 million in one year. the government will pay you $20 million upon the building’s completion. suppose the cash flows and their times of payment are certain, and the risk-free interest rate (i.e., the discount rate) is 10%. what is the npv of this opportunity?
Solved
Show answers
More tips
- A Animals and plants 5 Tips for Taking Care of Yews to Keep Them Green and Beautiful...
- H Health and Medicine How to Help Men Gain Weight?...
- A Auto and Moto Discovering the Leader: What is the Most Expensive Car in the World?...
- H Health and Medicine Hangover: How to Get Rid of It Quickly?...
- S Style and Beauty How to Choose the Right Fur Coat and Avoid Regrets?...
- C Computers and Internet How to Create a Folder on Your iPhone?...
- G Goods and services How to sew a ribbon: Tips for beginners...
- F Food and Cooking How to Make Mayonnaise at Home? Secrets of Homemade Mayonnaise...
- C Computers and Internet Which Phone is Best for Internet Surfing?...
- F Food and Cooking Everything You Need to Know About Pasta...
Answers on questions: Business
- B Business Refers to training employees on overseas work assignments to work through national and cultural boundaries. validation adventure learning experi...
- B Business In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems? a. the...
- M Mathematics Caroline has 3 sticks that mesure 4 inches, 5 inches, and 10 inches. What type of triangle can create out of these 3 sticks...
- B Business Among the actions businesses should take to improve trust in themselves and their brands are: a. All of these are correct. b. conduct advertising campaigns to tell...
- H History Do you guys have the fortnite battle pass its for a history assignment...
- H History Owieee hmmm free boints boi if first...
- M Mathematics Please can you guys help me...
- P Physics A Object has a constant mass . If the force increases, the acceleration will ......
- E English 6. Read the following quotation from “A Quilt of a Country. I was the product of a mixed marriage, across barely bridgeable lines: an Italian girl,an Irish boy. How...
- P Physics Una persona camina desde su casa hacia el supermercado 3 km hacia el norte, al llegar al supermercado se da cuenta que se le quedó la cartera y regresa a su casa y...
Ответ:
NPV= $1,983,471.1
Explanation:
Giving the following information:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
NPV= -Io + ∑[Rt/(1+i)^t]
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
NPV= -10,000,000 - 5,000,000/1.10 + (20,000,000/1.10^2)
NPV= $1,983,471.1
Ответ: