You are considering going in with a classmate, Tom A. Toe, to buy the land because you plan to construct a retail outlet on it, either immediately or in the future. For simplicity, assume that you can either build immediately, two years from now, or never. Should you decide to build, the construction costs will be $400m. The expected net operating income (NOI) is $30m in the first year, growing at 2% a year in perpetuity (rent is paid at the end of the year). The appropriate discount rate is 10%. The volatility of retail outlet valuations is 10% per year. If you eventually decide not to build, you will sell the land for $20m (it will become a junkyard). The risk-free rate is 5%. Start by drawing up the Asset Tree. Make an asset and option tree