After further research, Amit added a few more details about the project to the proposal. When Amit submitted the proposal, he again included the probability of the project's success based on whether a financial services tax would be imposed on the revenues from the project for stock broker training. Based on discussions with lawyers, there is a 60% chance that the tax would not be imposed, in which case the project would generate a cash flow of $6.0 million. If a financial services tax is imposed, the project would generate a cash flow of $0.9 million. Lesnor Co. now has the option of knowing about the tax situation before it commits to the project. Lesnor's management decides to wait for a year before they make a decision on launching the project. However, Amit mentions that the cash flow estimations for the project will remain valid only for the next five years. (For valuation purposes, the project has the same end date even with the option of waiting.) In the meantime, the managers decide to invest $4.5 million in securities for one year, which is expected to generate a rate of return equal to the project's cost of capital. Based on the information that Amit submitted in his report, calculate the values in the following table. Use the WACC to discount all cash flows. (Note: Do not round intermediate calculations.) Value NPV of the project after one year Option value of waiting Using the Black-Scholes option pricing model (OPM), Amit takes his research a step further and calculates more variables to find the value of the option of waiting for one year to accept or reject the project. He uses N(d,) = 0.9713, N()) = 0.9601, and 2.7183 as the approximate value of e. If Amit uses the Black-Scholes OPM, what will be the value of the option of waiting for one year? (Note: Do not round intermediate calculations.) = = $5.10 million $7.28 million $8.74 million $9.46 million