(Investment criteria and valuation) You are considering buying a building in downtown Asheville. The building is selling for $10 million, and you anticipate an annual FCF of $1 million. At the end of 10 years, the building will be half depreciated, and at this point you think you can sell the building for

$15 million. If your cost of capital is 17%, does the building have positive NPV? Assume a 20% capital gains tax on the sale of the building in 10 years;

income taxes and depreciation tax shields have been included in the annual FCF of $1 million.