Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel would require an initial investment of $15 million. Kim expects the hotel will produce positive cash flows of $2.4 million a year at the end of each of the next 20 years. The project's cost of capital is 15%.

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations.

No Timing Option:
Initial investment at t = 0 (in millions)	$15.00
Annual expected cash flow (in millions)	$2.40
Number of years cash flow expected	20
Project cost of capital	15%
Timing Option:
Initial investment at t = 1 (in millions)	$15.00
Number of years cash flow expected	20
Probability that tax will be imposed	50%
Annual CF (in millions) if tax imposed, Years 2 to 21	$1.35
Probability that tax will not be imposed	50%
Annual CF (in millions) if tax not imposed, Years 2 to 21	$3.45
Project cost of capital	15%

1. 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 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to two decimal places.