You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost you $500,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2).

1) If your discount rate is i=5%, what is the net present value of this investment?

2) If your discount rate is i=63% should you invest in this building?