To Induce the Owners of Splunk Company to Sell to Patterson

To induce the owners of Splunk Company to sell to Patterson Corporation, an earnout was included in the acquisition agreement. Patterson agrees to pay the former owners of Splunk $2.00 for every dollar of total EBITDA earned over $20 million in the next four years. The payment would be made at the end of four years. Expected total EBITDA in the next four years is as follows:
$$\begin{array} { | c | c | } \hline \text { Total EBIT DA earned } & \text { Probability } \\\hline \$ 5,000,000 & 0.40 \\\hline 20,000,000 & 0.30 \\\hline 25,000,000 & 0.20 \\\hline 40,000,000 & 0.10 \\\hline\end{array}$$ Required
What is the expected present value of the earnout at the date of acquisition, assuming a discount rate of 20%? Round your answer to the nearest dollar.