Genzyme Inc., a pharmaceutical company, obtained a patent on a drug for treating Alzheimer's disease. The patent has a 20-year life. The drug requires $390 million initial costs for commercial production. Based on the potential market and competition, the current assessment is that the after-tax cash flows on the drug would be $30 million per year until the patent expires. The cost of capital for the Genzyme Inc. is 5.5%. The variance on the assets of pharmaceutical companies is 22%. The Treasury bond yield is 3.5%. a. (1 point) What is the value of the patent if it is immediately commercialized? Enter your answer in millions rounded to two decimal places. b. (1 point) Provide the following inputs for the Black-Scholes Model and use the model to determine the value of the patent considering the option to delay the commercial production. Current value of the underlying asset S = . Strike price K = Standard deviation of the asset value Sigma = Life of the option t = Risk-free rate r = Cost of delay (i.e., dividend yield) y = Enter your answer in millions rounded to two decimal places.