A major semiconductor manufacturer is impressed with a new packaging technology developed at the University of Maryland.

To block their competitor from getting the new technology, the semiconductor manufacturer purchased an exclusive license from the University of Maryland for $30 million.

The semiconductor manufacturer figures that they will have to spend an additional $100 million to implement the new technology, BUT, their decision whether to move forward or not depends on what their competitor does in the next year.

On the upside, if implemented, the new technology could increase the value of the semiconductor manufacturer's project by 50% (u = 1.5).

If the riskless rate is 5%/year and assuming that d=1/u, what does the semiconductor manufacturer think the present value of the project must be?