This question is a variant of the Sport Hotel example that was presented in class, in the class notes, and in the Real Option chapter. Suppose that in the example, the first year expenditures that include the purchase of plans and permits is not $1 million but instead $1.3 million. All other aspects of the problem are the same as originally presented. Incorporating these new values, and the real option, what is the new NPV of the project? $ ???? million

[Sport Hotel example]

The following figure is from our course notes and is the same as figure 9.2 on page 272 of our textbook. complete hotel gives NPV of +S3 million abandon the project gives NPV of -$1 million complete hotel gives NPV of -$3 million abandon project gives NPV of -S1 million franchise is granted C D