You own a real estate company. You have just won a contract to build a residential apartment

for people who live in Calgary. Building it will require an investment of $$10$ million today and

$$5$ million in one year. The government will pay you $$25$ million upon the building$$s completion

in one year. 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