nvestment Timing Option: Decision-Tree Analysis im Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel would require an initial investment of $19 million. Kim ex will produce positive cash flows of $3.04 million a year at the end of each of the next 20 years. The project's cost of capital is 13%. 8. What is the project's net present value? Negative value, if any, should be indicated by a minus sign. Enter your answers in millions. For example, an ans $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places. $ 2.36 million .. Kim expects the cash flows to be $3.04 million a year, but it recognizes that the cash flows could actually be much higher or lower, depending on whethe government imposes a large hotel tax. One year from now, Kim will know whether the tax will be imposed. There is a 50% chance that the tax will be im case the yearly cash flows will be only $2.09 million. At the same time, there is a 50% chance that the tax will not be imposed, in which case the yearly $3.99 million. Kim is deciding whether to proceed with the hotel today or to wait a year to find out whether the tax will be imposed. If Kim waits a year, investment will remain at $19 million. Assume that all cash flows are discounted at 13%. Use decision-tree analysis to determine whether Kim should pr project today or wait a year before deciding. -Select