Intro A project has expected cash flows with a present value of $66 million. The annual standard deviation of the project's returns is 35%. The company can delay the start of the project by 1 year to find out more about the demand for the product. If the company decides to go ahead with the project after 1 year, the company needs to invest $44 million. The risk-free rate is 5% (continuously compounded)

What is the value of the option to delay (in $ million)?

Intro A project has expected cash flows with a present value of $66 million. The annual standard deviation of the project's returns is 35%. The company can delay the start of the project by 1 year to find out more about the demand for the product. If the company decides to go ahead with the project after 1 year, the company needs to invest $44 million. The risk-free rate is 5% (continuously compounded). Intro A project has expected cash flows with a present value of $66 million. The annual standard deviation of the project's returns is 35%. The company can delay the start of the project by 1 year to find out more about the demand for the product. If the company decides to go ahead with the project after 1 year, the company needs to invest $44 million. The risk-free rate is 5% (continuously compounded)