At the Beginning of 2020, Pentron Corporation Is in Negotiations

At the beginning of 2020, Pentron Corporation is in negotiations to acquire all of the stock of Santel Company. Pentron agrees to pay the former shareholders of Santel an additional cash amount at the end of 2022 (three years after the acquisition) that depends on the total reported earnings before interest, taxes, depreciation and amortization (EBITDA) for Santel during 2020-2022. Pentron will pay $2 for each dollar of total EBITDA above $10,000,000 that Santel reports. Here are Pentron's expectations for Santel's total reported EBITDA for 2020-2022.
$$\begin{array} { | c | c | } \hline \text { Total EBIT DA } & \text { Probability } \\\hline \$ 4,000,000 & 0.25 \\\hline \$ 8,000,000 & 0.10 \\\hline \$ 12,000,000 & 0.20 \\\hline \$ 16,000,000 & 0.30 \\\hline \$ 18,000,000 & 0.15 \\\hline\end{array}$$ The appropriate discount rate for this earnout is 20%.
Required
Calculate the amount of the earnout that Pentron should report as part of its cost of acquiring Santel.