Need answer to 2)

1) An independent film maker is considering producing a new movie. The initial cost for making this movie will be $20 million today. Once the movie is completed, in one year, the movie will be sold to a major studio for $25 million. Suppose the fair interest rate is 10% calculate the NPV.

2). Assume that rather than paying for the $20 million investment entirely using its own cash, the film maker is considering raising additional funds by issuing a security (a bond) that will pay investors $11 million in one year. Again the fair interest rate is 10%. What is the NPV?