Problem 14-06 (Investment Timing Option: Option Analysis) 4 Question 3 of 7 Check My Work (2 remaining) Investment Timing Option: Option Analysis expects the hotel will produce positive cash flows of $3 million a year at the end of 20 years. The projects 13% of Kim expects the cash flows to be $3 million a year, but it recognizes that the cash flows could actually be much higher or lower, depending on whe Korean government imposes a large hotel tax. One year from now, Kim will know whether the tax will be imposed. There is a 50% chance that the will be imposed, in which case the yearly cash flows will be only $2.2 million. At the same time, there is a 50% chance that the whill not bese in If Kim waits a year, the initial investment will remain at $20 million. Assume that all cash flows are discounted at 13%. Use the Black-Scholes model to estimate calculations. Enter your answer in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,234,000. Round your answer to three decimal places. Use computer software packages, such as Minitab or Excel, to solve this