Question: Please help me with the below problem, the answers go in the box with the xxxxxxx. thanks An auto plant that costs $140 million to

Please help me with the below problem, the answers go in the box with the xxxxxxx. thanks

An auto plant that costs $140 million to build can produce a line of flex-fuel cars that will produce cash flows with a present value of $180 million if the line is successful but only $80 million if it is unsuccessful. You believe that the probability of success is only about 30%. You will learn whether the line is successful immediately after building the plant.

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.

b-1. Calculate the expected NPV.

Answer is not complete.

a-1. Expected NPV	xxxxxxxx	million

b-1. Expected NPV	xxxxxxxx	million

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