Questions #(3) to # (4) are based on the following information. Clooney Inc. is considering a new product that would require an investment of $15 million. If the new product is well received, then the project would produce cash flows of $10 million a year for 3 years, but if the market does not like the product, then the cash flows would be only $4 million per year. There is a 50% probability of both good and bad market conditions. Clooney could delay the project for a year while it could conduct a test to determine if demand would be strong or weak. The projects cost and expected annual cash flows (expected at t = 0) are the same whether the project is delayed or not. Clooneys WACC is 10%. (3). What is the project's expected NPV after taking this timing option into account? (4). What is the value of the investment timing option?