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Suppose that Stone Enterprises is trying to develop a new project but is uncertain about what the market for that product will be one year

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Suppose that Stone Enterprises is trying to develop a new project but is uncertain about what the market for that product will be one year from now. The new product will require stone to invest \$25 million. If the invesement is made immediately Stone expects the NPV to be $30 million. Stone expects to earn an additional $3 million in free-cash-flow this year if the project is undertaken immediately. How much is the option to wait for one year worth? Assume that the project's cost of capital is 30%, that similar projects have annual standard deviations of 30%, and that the risk-free rate is 5%. Answer in millions round to two decimals

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