Webber plc is an international conglomerate with a real estate division that owns the right to erect an office building on a parcel of land in the outskirts of Leeds over the next year. This building would cost £10.5 million to construct. Due to low demand for office space in the area, such a building is worth approximately £10 million today. If demand increases, the building would be worth £12.5 million a year from today. If demand decreases, the same office building would be worth only £8 million in a year. The company can borrow and lend at the risk-free rate of 2.5 per cent effective annual rate. A local competitor in the real estate business has recently offered £750,000 for the right to build an office building on the land. Should the company accept this offer? Use a two-state model to value the real option.