You also have a second potential project, with a different real option. The project will have an initial cost of $52 million, which must be paid at the time of investment. You realize that the project has three possible cash flows starting in year 1 and continuing forever. First, there is a 17% chance of earning $1.03 million per year starting in year 1 . Second, there is a 36% chance of earning $6.62 million per year starting in year 1 . Third, there is a chance the the project will earn $3.78 million per year. These are the only three possibilities. In 2 year(s), you will be able to abandon the project and sell off the assets for $37.5 million, but will give up the cash flows starting one year after you abandon (if you abandon in year 1, you receive the year 1CFs but no CFs after that; if you abandon in year 2, you receive the year 1 and year 2CFs, but no CFs after that, and so on.). The risk-free rate and appropriate discount rate for the project is 5%. What is the value today of this option to abandon? Input your answer in millions of dollars, rounded to the nearest 0.001 (e.g:, $19,056,129 would be entered as 19.056), For partial credit only: Refer to Question 3 . Type out the calculation that you did (and the answer you calculated) to determine whether to exercise the option in the highest CF case: Type out the calculation that you did (and the answer you calculated) to determine whether to exercise the option in the mid-CF case: Type out the calculation that you did (and the answer you calculated) to determine whether to exercise the option in the lowest CF case: Type out the calculation or calculations that you did to value the option to abandon after you did the above calculations (do not repeat those calculations in this step). You may not need all of these blanks; just fill in the ones that you need: You also have a second potential project, with a different real option. The project will have an initial cost of $52 million, which must be paid at the time of investment. You realize that the project has three possible cash flows starting in year 1 and continuing forever. First, there is a 17% chance of earning $1.03 million per year starting in year 1 . Second, there is a 36% chance of earning $6.62 million per year starting in year 1 . Third, there is a chance the the project will earn $3.78 million per year. These are the only three possibilities. In 2 year(s), you will be able to abandon the project and sell off the assets for $37.5 million, but will give up the cash flows starting one year after you abandon (if you abandon in year 1, you receive the year 1CFs but no CFs after that; if you abandon in year 2, you receive the year 1 and year 2CFs, but no CFs after that, and so on.). The risk-free rate and appropriate discount rate for the project is 5%. What is the value today of this option to abandon? Input your answer in millions of dollars, rounded to the nearest 0.001 (e.g:, $19,056,129 would be entered as 19.056), For partial credit only: Refer to Question 3 . Type out the calculation that you did (and the answer you calculated) to determine whether to exercise the option in the highest CF case: Type out the calculation that you did (and the answer you calculated) to determine whether to exercise the option in the mid-CF case: Type out the calculation that you did (and the answer you calculated) to determine whether to exercise the option in the lowest CF case: Type out the calculation or calculations that you did to value the option to abandon after you did the above calculations (do not repeat those calculations in this step). You may not need all of these blanks; just fill in the ones that you need