A lumber-harvesting corporation is considering leasing some forested land for $12 million. The land will yield 2800,000 linear feet of mixed-length lumber per year indefinitely. To harvest the lumber, the corporation will incur a one-time cost of $450,000 to set up operations and, once operations have begun, a cost of $0.44 per linear foot. The set-up cost will be the same this year and next year. At the current market price of $0.69 per linear foot, the harvesting would not be profitable. But the price of lumber is very volatile and the lease would permit the harvester to wait until next year to begin operations. Once begun, we assume that the harvesting will last in perpetuity. Forecasters predict that after one year, the price of lumber will be either $1.02 or $0.59. Financial analysis determines that the appropriate discount rate is 6 percent and the risk-free rate is 4 percent. Using the binomial model, what is the NPV of leasing the land?