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You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 9.9

$9.9 million today and $ 4.9

$4.9 million in one year. The government will pay you $ 20.2

$20.2 million in one year upon thebuilding's completion. Suppose the interest rate is 10.2 %

10.2%.

a. What is the NPV of thisopportunity?

b. How can your firm turn this NPV into cashtoday?

a. What is the NPV of thisopportunity?

The NPV of the proposal is $

million.(Round to two decimalplaces.)

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