1. Micron Inc. can invest $5,000,000 in a new technology. Microns CFO is concerned about uncertainty of the future interest rates. She believes that future interest rates may be either 12% or 7% into foreseeable future. The risk-neutral probability that interest rates will be at 7% is 60%. The one-year risk-free interest rate is 5%; the rate on a risk-free 20-year bond is 10% and the rate on an equivalent 20-year callable bond is 8.5%. New project will provide Micron an annual cash flows of $570,000 per year for the next 20 years. Should Micron accept this project? Why or why not?