Option to Expand. The static project value now is $320 million, the standard deviation of static project value is 62.0%, the riskfree rate is 0.00%, the project can be expanded by 50% at any time for an expansion cost of

$90.0 million, the time to project completion is 4.1 years, and an 8 period binomial model will be used. When should the project be expanded? What is the flexible project value? What is the value of the option to expand?