Investment Timing Option: Decision-Tree Analysis The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company estimates the project would cost $4 milion today. Karns estimates that, once drilled, the oil will generate positive net cash flows of $2 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 ol, Karns estimates that if it waits 2 years then the project would cost $5 million. Moreover, if it waits 2 years, then there is a 90% chance that the net cash fows would be $2.1 milion a year for 4 years and a 10% chance that they would be $1.1 mialion a year for 4 years. Assume all cash fows are discounted at 10%. a. If the company chooses to drill 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 mililon should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. million b. Using decision-tree analysis. does it make kanen to wait 2 years before deciding whether to drill