Investment Timing Option: Decision-Tree Analysis The Kams Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company esturnates the project would cost $8 million today. Karns estimates that, once dnlled, the oil will generate positive net cash flows of $4 million a year at the end of each of the next 4 years. Although the company is fairly confident about its cash flow forecast, in 2 years it will have more information about the local geology and about the price of oil. Karns estimates that if it wait: 2 years then the project would cost $9 million, Moreover, if it waits 2 years, then there is a 90% chance that the net cash flows would be $4.2 imilion a year for 4 years and a 10% chance that they would be $2.2 million a vear for 4 years. Assume all cash flows are discounted at 9%. a. If the company chooses to dnil today, 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. 3 mulion b. Usina decision trea analvus. does it make sense to wait 2 years before deciding whether to drill