MGT-655 Topic 2: Project Man x Question 14 - Topic 2 Assignm X - 2 x Expando, inc. Is Considering T X , + { c ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/9... @ * Tonic 2 Assignment Sv. . Help Save & Ent Submit Check my work 14 Problem 5-8 (Algo) 2 for ok Expendo, Inc., is considering the possibility of building en advitierel lectory that would produce a new edition to its product line. The company is currently considering two options. The first sasmall facility that it could buidat a cost of Sa milion. If cemand for now products is low, the company expects to recere $10 milion discourier revenues present value of future revenues with the smal faciity. On the other hand, demand is high, it expects $12 milion in discountaravances using the small facility. The second option is to build a large factory at a cost of $10 million were demand to below the compeny would expect $11 million in discouried revenues with the larga plant. If demand is high, the company estimates that the discounted revenues would be S15 milian. Inalther case, the probability of demand being high s 0.00, and the probability of it being O' is 0.40. Nos constructing a new factory would result in na Additional revenue being generated because the current factors can produce these new araducts A. Calculere the NPV for the following (Leave no cells blank - be certain to enter" wherever required. Enter your answers in o millions rounded to 1 decimal place.) Il Punt NPY Plana Smul locity Do nothing Large city llon 1- llon b. The best decision to hele Expendo is to build the rest Otaco nothing Ota tuld the small facility Graw