Liberty Products, Inc., is considering a new product launch. The firm expects to have annual free cash flow of $5.3 million for the next eight years. The company uses a discount rate of 11% for new product launches. The initial investment is $23 million. Assume that the project has no salvage value at the end of its economic life. After the first year, the project can be dismantled and sold for $18 million after taxes. Suppose it is likely that expected annual FCF will be revised upward to $7.3 million if the first year is a success and revised downward to $3.3 million if the first year is not a success. If success and failure are equally likely, what is the NPV of the project when the option of abandonment is considered? What is the value of the option to abandon?