An auto plant that costs $220 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $280 million if the line is successful but only $150 million if it is unsuccessful. You believe that the probability of success is only about 52%. You learn whether the line is successful immediately after building the plant.
a-1.) Calculate the expected NPV. (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 1 decimal place.) EXPECTED NPV (million):
b-1.) Calculate the expected NPV. (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EXPECTED NPV (million):