Woo & Bong company is considering the introduction of automated stores that can reduce labour costs. If the automated stores do not operate efficiently in the first year, Woo & Bong company can abandon the project. You have determined the following information relevant to the abandonment possibility:

Present value of business without option abandon $553

Abandonment value $500

Risk-free interest rate 10%

Asset price $553

u = 1.23 and d = 0.82

What is the project value?