ALiBaba industries is considering to start new project! The Project either start today or exactly in two years. The project will cost 10.8 million to start today. The cost of starting project in two years is 12 million. You expect the project to generate 1,250,000 in free cash flow per year forever. The risk free rate is 4.5%. The expected return on the market is 9%, and beta for projects of similar risk is 1.5. The variance of the project's cash flows is 13%.

1. what is the NPV of the option to wait until year 2 to start the project?

2. Should you begin the project today or wait for two years?