Consider the following investment opportunity for VOL, Inc. I'll ask you to calculate the value of the underlying asset, P, for this investment timing option. Invest $1 million now and if the Supreme Court rules in your favor (70% probability) you'll receive $300,000 per year for 5 years. If the Supreme Court doesn't (30% probability) you'll receive $100,000 per year for 5 years. If you wait a year to invest, you'll know which way the Supreme Court ruled and can choose whether or not to invest, knowing what the cash flows will be if you do. Your WACC is 10%. What is the value, P, of the underlying asset that you would use when applying the Black Scholes OPM to this real option?

Group of answer choices

827,081

1,210,929

1,100,844

1,000,768

909,789