4. Investment timing option - Decision tree and the Black-Scholes valuation Suppose a technical glitch in the trading systems in the stock markets led to several "erroneous trades." Soon after, Lesnor Co., a professional training company, came up with the idea of developing a new division that would teach securities traders to communicate by using an old style of hand language on the trading floor, which would help revive that dying language. A young product development employee, Ryan, proposed this idea and also submitted the following details about the project: The division would need an initial investment of $4.0 million. Ryan expects that this division will bring in an additional $3.5 million at the end of each of the next five years. The project's cost of capital is 9%, and the risk-free rate is 4%. The WACC is used to discount all cash flows. Based on the given information, what is the project's expected net present value (NPV)? (Note: Do not round intermediate calculations.) $7.69 million $10.57 million $14.42 million $9.61 million