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 $17 million. Kim expects the hotel will produce positive cash flows of $2.89 million a year at the end of each of the next 20 years. The project's cost of capital is 15%. a. What is the project's net present value? A negative value should be entered with a negative sign. Enter your answer in millions. For example, an answer of $1.2 milion should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. million b. Kim expects the cash flows to be $2.89 million a year, but it recoonizes that the cash flows could actually be much hioher 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 $1.7 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 $4.08 milion. 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 $17 million. Assume that all cash flows are discounted at 15%. Use decision-tree analysis to determine whether kim should proceed with the project today or wait a year before decidina