Problem 4-8 (Algo) 28 Expando, Inc is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $8 million. If demand for new products is low, the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other hand. If demand is high, it expects $12 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $11 million were demand to be low, the company would expect $12 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $16 million in either case, the probability of demand being high so 30, and the probability of it being low is 070. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products 1. Calculate the NPV for the following. (Leave no cells blank - be certain to enter "o" wherever required. Enter your answers in millons rounded to 1 decimal place.) Plans NTV hon milion Doo Liity b. The best decision to be Expanda 10 build the worocility to do in to build the