8. Real Options: Investment Timing Option II Florida Seaside Oil Exploration Company is deciding whether to drill for oil off the northeast coast of Florida. The company estimates that the project would cost $4.03 million today. The firm estimates that once drilled, the oil will generate positive cash flows of $2.015 million a year at the end of each of the next four years. While the company is fairly confident about its cash flow forecast, it recognizes that if it waits two years, I would have more information about the local geology as well as the price of oil. Florida Seaside estimates that if it waits two years, the project would cost $4.42 million. Moreover, if it waits two years, there is a 80% chance that the cash flows would be $2.12 million a year for four years, and there is a 20% chance that the cash flows will be $1.462 million a year for four years. Assume that all cash flows are discounted at a 8% WACC. If the company chooses to drill today, what is the project's net present value? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to five decimal places. $ million