Investment Timing Option: Option Analysis today. Karns estimates that, once drilled, the oil will generate positive net cash flows of $4 million a year at the end of each of the estimates that if it waits 2 years then the project would cost $9 million. Moreover, if it waits 2 years, then there is a 90% chance that the net cash be $4.2 million a year for 4 years and a 10% chance that they would be $2.2 million a year for 4 years. Assume all cash flows are discounted at 10%. Use round intermediate calculations. Enter your answer in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,034 . Round your answer to three decimal places. million