You are analyzing a capital budgeting project. The project is expected to have a PV of cash inflows of $$310$ million and will cost $$250$ million $($in present value dollars$)$ to take on$.$ You have done a simulation of the project cashflows and the simulation yields a variance in present value of cash inflows of $0\mathrm{.}04.$ You have the rights to this project for the next $10$ years, during which period you have to pay $$11$ million a year to retain the project rights. The $10-$year treasury bond rate is $4\mathrm{.}5\%.$

a$.$ What is the value of the project as an option?

The value is $Answer $1$ Question $3$

$.($Round your answer to two decimals. Omit the $\text{'}$$$\text{'}$ sign in your response.$)$

b$.$ What is the difference in the project's value from option pricing and traditional NPV$?$