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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

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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 $9.79 million today and $5.00 million in one year. The government will pay you $23.50 million upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 10%. a. What is the NPV of this opportunity? b. How can your firm tum this NPV into cash today? E a. What is the NPV of this opportunity? The NPV of this opportunity is $ million. (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select from the drop-down menus.) it will receive from the government. The The firm can borrow $5.00 million today, and pay it back with 10% interest using the $5.00 million firm can use $5.00 million of the $5.00 million to cover its costs today and save $5.00 million in the bank to earn 10% interest to cover its cost of $5.00 million next year. This leaves $5.00 million in cash for the firm today

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