You’re planning to scale down the operations of your manufacturing plant by 70% sometime in the next six months. Suppose the value of the plant today is £100m. Your plan is to save 70% from contraction. Risk uncertainty in the operating environment is estimated by an annualized variance of 25% in cash flows. The risk-free rate of return is 8% per annum. Use the binomial options pricing approach with a time step of three months to value the option to scale down operations. Is there an optimal time for taking such an action? Explain.