A company is considering delaying a project with after$-$tax cash flows of $$25$ million but that costs $$300$ million to take on $($the life of the project is $20$ years$),$ and the cost of capital is $16\%.$ A simulation of the cash flows leads you to conclude that the standard deviation in the present value of cash flows is $20\%.$ If you can acquire the rights to the project for the next $10$ years, what is the value of the rights? $($The six$-$month T$-$bill rate is $8\%,$ the $10$ year bond rate is $12\%,$ and the $20$ year bond rate is $14\%.)$

Answer below to check your work:

S $=$ PV of $$25$ million a year for $20$ years @ $16\%=$ $$148\mathrm{.}22$ million

K $=$ $$300$ million

T $=10$ years

SD $=20\%$

R $=12\%$

Y $=$ dividend yield $=1/10=10\%$

d$1=-0\mathrm{.}4826$

d$2=-1\mathrm{.}1146$

N$($d$1)=0\mathrm{.}315$

N$($d$2)=0\mathrm{.}1325$

C $=5\mathrm{.}20$ million

Show your work$/$steps on how you arrived at answer$($s$).$