You run a construction firm. You have just won a contract to build a government office building. Building it will require an investment of $10.3 million today and $5.3 million in one year. The government will pay you $21.3 million in one year upon the building’s completion. Assume the cost of capital is 10.8%.

a. What is the NPV of this opportunity?

b. How can your firm turn this NPV into cash today?