Consider the following investment proposal:

At t=0, initial outlay of $190m

Probability =.7 that cash flow of $50m per annum for t=1 through 10;

Probability =.3 that cash flow of $20m per annum for t=1 through 10.

The applicable discount rate = 10% per annum.

Would you undertake the project?

The double-up option:

at t=1, you may double up the operation by incurring another outlay of $190 which will generate a cash flow for t=2 through 10.

What is the NPV of the project with the option?