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	30%	-17	13	13	13	13
Average	40%	-17	8	8	8	8
Worst	30%	-17	-5	-5	-5	-5

Your firm has an option to abandon the project after 1 year of operation, in which case it can sell the asset and receive $10 millions after taxes in cash at the end of Year 2. The WACC is 11%. Estimate the value of the abandonment option.

Group of answer choices

$6.48 million

$5.74 million

$5.94 million

$6.11 million

$6.90 million