Your company is considering a project with the following after-tax cash flows (in $millions)

Outcome	Probability (%)	t = 0	t = 1	t = 2	t = 3	t = 4
Good	50	-11	7	7	6	5
So-so	50	-11	1	2	2	1

If the outcome is good, the project would open the door to another investment project which would required an outlay of $8 million at the end of Year 3. The new project would then be sold to another company netting $16 million after-tax at the end of Year 4. All cash flows are to be discounted at 8%. Estimate the value of the growth option.

Group of answer choices

$2.70 million

$1.27 million

$ 1.94 million

$2.02 million

$2.84 million