Investment Timing Optiont Option Analysis Kim fiotels is interested in developing a new hotel in Sepul. The company estimates that the hotel would require an initial imvestment of 520 million. xam expecta the hotel will produce positive cash flows of 53 million a year at the end of each of the next 20 years. The project's cost of capital is 13%. Kim expects the cash flows to be 13 mailion a year, but it recognizes that the cash flows could actually be much higher or lower, depending an whether the Korean government imposes a targe botel tax. One year from now, Kim will know whether the tax will be imposed. There is a 50% chance that the tak will be intposed, in which zase the yearly caich flows wall be only 52.2 million, At the same time, there is a 50% chnnce that the tax wall not be imposed, in which case the vearly cash flows will be 53.1. million. Kirt as deciding whether to proceed with the hotel today or to wait a year to find out whecher the tax will be imposed. If kim waits a ynar, the initial immetinent mill remain at $20 million. Assume that all cash flows are discounted at 13\%. Wse the Black-5choles model fo estimate the volue of the obtion. Assume that the vatiance of the project's rate of retum is 0.0733 and that the risk.free rate is 5%. Do not round intermediate calculations. Enter your answer in mullions. For example, an answer of 51.234 million stuaild be entered as 1.234, not 1,234,000. Round your answer to three decamal places. Use cornputer soltware packages, such as Miritab or Exeel, to solve this problent