You run a construction firm. You have just won a contract to build a government office building. It will take one year to construct it requiring an investment of $ 8.96 $8.96 million today and $ 5.00 $5.00 million in one year. The government will pay you $ 21.50 $21.50 million upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 7 % 7%. 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 this opportunity is _______. (Round to two decimal places.)

B. How can your firm turn this NPV into cash today?(Select from the drop-down menus.) The firm can borrow ____today, and pay it back with 7 % 7% interest using the _____ it will receive from the government. The firm can use _____of the _____ to cover its costs today and save _____ in the bank to earn 7 % 7% interest to cover its cost of _____ next year. This leaves _____ in cash for the firm today.

4.67 million, 21.50 million, 20.09 million, 5.00 million, 8.96 million, 6.46 million ( in drop down menu )