1. Suppose you are considering opening a computer store, which requires you to invest $10,000 now. Demand for computer is expected to be very volatile this year, but should be stable afterwards. By the end of first year, you'll find out whether the demand is good and earn $4,500 per year or it is bad and lose $1,000 per year forever. Suppose the two events are equally likely to occur. The discount rate for this project is 20%. You will have an option to sell your store at $4,000 after the first year. What is the value of the option to sell (compared to not having the option)?