Your all equity firm will operate for one year and then shut down operations. The firm will have one cash flow that next year that will be $40M if exchange rates rise and $20M if exchange rates fall. The operating cost next year will be $15M and the project requires an upfront cost of $7M. The probability of exchange rates rising is 20 percent. Assume that the discount rate for all cash flows is 12 percent. Suppose that in addition to a $2M disposal costs that will be incurred next year that the upfront cost can be delayed for one year. Is this now a worthwhile investment?