A project is worth $18 million today. One year from today, the project will be worth $22 million with high demand and $14 million with low demand. It will also be possible to sell the project off for $16 million one year from today. Using risk neutral probabilities, which of the following is closest to the value of the abandonment option if the risk-free rate is 4% per year?

1. $0.79 million
2. $1.58 million
3. $2.71 million
4. $3.45 million