You are considering to join a fast-food chain shops either now or in two years. The cost to open a shop is $8 million according to the contract. If you open the shop immediately, you expect it to generate $0.9 million in free cash flow the first year, and these cash flows are expected to grow at a rate of 3.5% per year, based on your prediction of the product market. Given the cost of capital is 13%, risk-free rate is 3%, and appropriate business volatility is 60%, the value of the project is closest to:

Select one:

A. $1.3 million

B. $2.7 million

C. $2.1 million

D. $1.7 million

E. $3.1 million

F. $2.4 million