Shining Metal Inc. has invested in a gold mine. The company needs to decide whether to drill for gold at the beginning of the year or wait until next year. Gold drilled this year will be sold at end-of-year market prices. The mine generates 15,000 ounces of gold per year. The current price of gold is $400 per ounce, and the volatility of gold returns is 40% per year. The risk-free rate of interest is 2%. The variable cost of extracting and marketing gold is $300 per ounce. The fixed costs of operating the mine are $2,000,000 a year. Assume no convenience yields and decide whether it is worth drilling for gold this year or it is better to shut the mine down and wait for one year.