The Aaron Corporation is evaluating a new project proposal that would cost $190 million and is expected to generate $65 million per year for the next 5 years. The company's hurdle rate for similar projects is 10%. An alternative configuration for the project would cost only $150 million and generate only $48 million per year for the 5 year planning horizon but would also provide the opportunity to expand after one year for an additional cost of $55 million, which in turn would increase the expected cash flows for the remaining years of the project to $75 million per year. What is the value of the real option (in $ millions, rounded to one decimal place, e.g., 23.4) that is embedded in the alternative configuration of the project?

the Answer should be 3.4