Question: Need answer a-1 and b-1 to question 11 pls An auto plant that costs $180 million to build can produce a line of flex-fuel cars

Need answer a-1 and b-1 to question 11 pls

Need answer a-1 and b-1 to question 11 pls An auto plant

An auto plant that costs $180 million to build can produce a line of flex-fuel cars that will produce cash flows with a present value of $220 million if the line is successful but only $110 million if it is unsuccessful. You believe that the probability of success is only about 40%. You will learn whether the line is successful immediately after building the plant. ints a-1. Calculate the expected NPV. Note: Do not round Intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers In millions rounded to 1 decimal place. eBook a-2. Would you build the plant? Suppose that the plant can be sold for $175 million to another automaker if the auto line is not successful. Note: Do not round Intermediate calculations. A negative amount should be Indicated by a minus sign. Enter your answers In Print millions rounded to 1 decimal place. b-1. Calculate the expected NPV. b-2. Would you build the plant? a-1. Expected NPV million a-2. Would you build the plant? No b-1. Expected NPV million b-2. Would you build the plant? Yes

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