You own a small manufacturing plant that currently generates revenues of $2 million per year. Next year, based upon a decision on a long- term government contract, your revenues will either increase by 20% or decrease by 25%, with equal probability, and stay at that level as long as you operate the plant. Other costs run $1.6 million per year. You can sell the plant at any time to a large conglomerate for $5 million and your cost of capital is 10%. Given the embedded option to sell the plant, the value of your plant will be closest to: You own a small manufacturing plant that currently generates revenues of $2 million per year. Next year, based upon a decision on a long- term government contract, your revenues will either increase by 20% or decrease by 25%, with equal probability, and stay at that level as long as you operate the plant. Other costs run $1.6 million per year. You can sell the plant at any time to a large conglomerate for $5 million and your cost of capital is 10%. Given the embedded option to sell the plant, the value of your plant will be closest to