Hilton Hotels is very interested in developing a new hotel in Zambia. The company estimates that the hotel would need an initial investment of $20 million. Hilton Hotel expects the hotel will generate positive cash flows of $3 million a year at the end of each of the next 20 years. The project's cost of capital is 13%. 1. What is the project's net present value? ii. Hilton Hotel expects the cash flows to be $3 million a year, but it recognizes that the cash flows could actually be much higher or lower, depending on whether the Zambia government imposes a large hotel tax. One year from now, Hilton Hotel will know whether the tax will be imposed. There is a 50% chance that the tax will be imposed, in which case the yearly cash flows will be only $2.2 million. At the same time, there is a 50% chance that the tax will not be imposed, in which case the yearly cash flows will be $3.8 million. Hilton Hotel is deciding whether to proceed with the hotel today or to wait a year to find out whether the tax will be imposed. If Hilton Hotel waits a year, the initial investment will remain at $20 million. Assume that all cash flows are discounted at 13%. Use decision-tree analysis to determine whether Hilton Hotel should proceed with the project today or wait a year before deciding