John Lusk is a real estate developer who owns the right to put up an office building on a parcel of land in downtown Los Angeles. The office building will cost \($50\) million. John Lusk does not actually plan to own and run the office building but instead he will build it, rent it, and then sell it to a long-term investor at the end of one year. John Lusk estimates that the building can be sold one year from now for \($55\) million. The IRR of the project is 10 percent and so John Lusk has determined that this is a zero NPV project. However, one year from now there is a 50-50 chance that the cost of capital will be either 11 percent or 9 percent. John Lusk has received an offer on his option for \($500.\) Should he take it?