investment Timing Option: Decision-Tree Analysis Iim Hotels is interested in developing a new hotel in Seoul. The company estimates that the botel would require an initial investment of $18 million. Kim expecti the hotel will produce ositive cash fows of $3 million a year at the end of each of the next 20 years. The project's cost of capital is 13%. What is the project's net present value? Do not round imtermediate calculations. Enter your answer in milions. For example, an answer of $1.23 millign should be entered as 1.23 , not 1,230.000. Round your answer to two decimal places, s miluon 2. Kim expects the cash flows to be $3 million a year, but it recognizes that the caur flows covid actually be much higher or lower, depending on whether the Korean government imposes a large hotel tax One year from now, Kim will know whether the tax will be imposed. There is a 50 \% chance that the tax will be imposed, in which case the vearly cash fows will be only $2.2 malion. At the same time, there is a 50% chance that the lax will not be imposed, in which case the vearly cash flons will be $3.8 million. Kim is deciding whether to proceec with the hotel today or to wat a year to find out whether the tax will be imposed. If Kim wasts a year, the initial investment will remain at 118 million, Assume that ali cash flows are discounted at 13%. Uae decisiantere analvis to determine whether Kim should proceed with the progect today or wait a vear before deciding