Pragmatic Furniture Inc owns a manufacturing plant that currently generates revenues of $2 million per year. Next year, based upon a decision on a long-term contract, revenues will either increase by 20% or decrease by 25%, with equal probability, and stay at that level as long as the plant operates. As well, the rm has costs of $1.6 million per year and its cost of capital is 10%. 15) Assuming the rm can not sell the plant but it can shut down the plant at no cost at any time, the value of the option to abandon production, is closest to: a) $0 million b) $0.5 million c) $3.5 million d) $4.0 million