Petroleum Inc. owns a lease to extract crude oil from the sea. It is considering the construction of a deep-sea oil rig at a cost of $50 million (C0) which is expected to remain constant. The price of oil P is $60/bbl and the extraction costs are $35/bbl. The quantity of oil extracted is expected to be Q = 300,000 bbl per year forever. The risk-free rate is 6% per year and that is also the cost of capital (ignore taxes). The firm proceeds to construct the oil rig and a year later the oil price has plummeted to $30/bbl. The firm can cap the rig at a cost of $10 million. The firm can restart pumping when oil prices are more favorable. Calculate the NPV of capping the rig (abandonment option).