4 Expando, Inc. is considering the possibility of building an additional factory that would produce a new to their product line. The company is currently considering two options. The first is a small facility t of $7 million. If demand for new products is low, the company expects to that it could build at a cos receive $10 million in discounted revenues other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $10 million Were demand to be low the company would expect $12 million in discounted revenues with the large plant. If demand is high, the c estimates that the discounted revenues would be $16 milion. In either case the probability of demand present value of future revenues with the s mall ompany it being low is 0 70 Not constructing a new factory would result in no additional revenue being generated because the current factores cannot produce these new products a. Calculate the NPV for the following (Leave no cells blank be certain to enter "" wherever required. Enter your answers in millions rounded to 1 decimal place. Plans Small facility Do nothing Large facility million b. The best decision to help Expando is to build the small facility to build the large facility to do nothing References