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

Cases	Probability	t = 0	t = 1	t = 2	t = 3	t = 4
Best	25%	-21	14	14	14	14
Average	50%	-21	10	10	10	10
Worst	25%	-21	-9	-9	-9	-9

Your firm has an option to abandon the project after 1 year of operation, in which case it can sell the asset and receive $7 millions after taxes in cash at the end of Year 2. The WACC is 10%. Estimate the value of the abandonment option.

Group of answer choices

$5.34 million

$4.71 million

$6.53 million

$5.90 million

$4.15 million