A Company is deciding whether to drill for oil off the northeast coast of a state. The company estimates that the project would cost $4.13 million today. The firm estimates that once drilled, the oil will generate positive cash flows of $2.065 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, it would have more information about the local geology as well as the price of oil. The company estimates that if it waits two years, the project would cost $4.75 million. Moreover, if it waits two years, there is a 75% chance that the cash flows would be $2.203 million a year for four years, and there is a 25% chance that the cash flows will be $1.353 million a year for four years. Assume that all cash flows are discounted at a 9% WACC.

What is the projects net present value in todays dollars, if the firm waits two years before deciding whether to drill?