investment Timing Option: Decision-Tree Analysis Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel would require an initial investment of $21 million. Kim expects the hotel will produce 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 12%. a. What is the project's net present value? Do not round intermediate calculations. Enter your answer in millions, For example, an answer of $1,23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $million b. Kim 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 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 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. Kim is deciding whether to proceed with the hotel today or to wait a year to find out whether the tax will be imposed. If Kim waits a year, the initial investment will remain at $21 milion. Assume that all cash flows are discounted at 12%. Use decision-tree analysis to determine whether Kim should proceed with the prolect today or wait a vear before decidina. v-Select- It makes sense to proceed whe the protect todm it makes sense to walt a your before deciong