Spicurity is now operating a plant that has the ability to generate a cash flow of $2.1 million per year. The government plans to change the regulation regarding this plant shortly. After the change of the regulation, the cash flow next year will either increase by 20% or decrease by 20%, with a probability of 40% and 60%, respectively. The manager expects the change will last for the future once it is made. The expense to run this plant is $1.3 million annually. The cost of capital for this plant is estimated to be 9%. Another company, Tigerprises, would like to buy this plant for $2.6 million at any time. The value of this plant will be closest to: $6.98 million $5.78 million $-0.44 million $7.96 million