Your company generates revenues of $5 million per year. Next year, company may get a long-term large contract, which will either increase by 15% or decrease by 20% (if contract is not signed) with equal probability. The new revenue will stay at that level forever. Operating costs are at $2 million dollars per year. You can sell the company at any time to $7 million and your cost of capital is 10%.

What will be the value of your company if it gets the contract and the sales increase by 15%?