Woo & Bong Company is considering the introduction of automated stores that can reduce labour costs. If the automated stores do not operate effectively 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 to 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? Show all work to receive marks. No marks will be given for answers without justification. (Round to the nearest hundredth. e.g., 0.16666 must be expressed as 0.17).