IKO Enterprise of Halifax has the opportunity to purchase a firm whose primary asset is ownership of the

exclusive rights to develop a parcel of undeveloped land sometime during the next $5$ years. Without considering

the value of the option to develop the property, the investor group believes the net present value of the firm is

$$(10)$ million. However, to convert the property to commercial use $($i$.$e$.,$ exercise the option$),$ the investors will

have to invest $$60$ million immediately in infrastructure improvements. The primary uncertainty associated with

the property is how rapidly the surrounding area will grow. Based on their experience with similar properties,

the investors estimated that the variance of the projected cash flows is $5\%$ of the value of the property, which is

$$55$ million. Assume the risk$-$free rate of return is $4$ percent. What is the value of the call option the investor

group would obtain by buying the firm? Is the value sufficient to justify the acquisition of the firm