a company is considering a project. It has only 10% debt in capital structure, with a pre-tax cost of 8% it has a beta of 1.4; the free risk rate is 5% and the equity risk premium is 6.5%. The project would be 90% equity funded. This would require an investment of k700,000 at the end of year 5 and this would produce a stream of cash-flows with a present value k650,000 at the end of year 5. The volatility of the cash flows is 35%. Assume WACC is 13.25%. The company considers this project to be a real option. Find the value of this real(call) option.