You own a small food processing plant that currently generates revenues of $2 million per year. Next year, based upon a decision by the local school system, your revenues will either increase by 34% or decrease by 36%, with equal probability, and stay at that level as long as you operate the plant. Other costs run $1.6 million dollars per year. You can sell the plant at any time to a large conglomerate for $5 million and your cost of capital is 10%.
What is the value of your plant (do not include the time 0 cash flow)? Round your answer to the second decimal place (e.g., 10.25 million).