Pineapple Bay LLC., is considering buying a vacant lot that sells for $8.5 million. If the property is purchased, the company's plan is to spend another $40 million today (t=0) to build a resort hotel on the property. The after-tax cash flows from the hotel will depend critically on whether the state increases the tourism tax in this year's legislative session. If the tax is increased, the resort is expected to produce after-tax cash inflows of $1,250,000 at the end of each of the next 15 years. If the tax is not altered, the hotel is expected to produce after-tax cash inflows of $9,000,000 at the end of each of the next 15 years. The project has an 8 percent WACC. While the company does not have an option to delay construction, it does have the option to abandon the project 1 year from now if the tax is imposed. If it abandons the project, it would sell the complete property 1 year from now at an expected price of $64 million. Once the project is abandoned the company would no longer receive any cash inflows from it. Assuming there is a 60% probability the tax increase will be imposed, what is the value of this abandonment option