a) A Korean-owned PV manufacturer (Qcells) plans to invest US$100 million into a perovskite-tandem cell pilot production line at its factory in South Korea. The investment will produce cash flows with a PV of $160 million if the line is successful but only $60 million if it is not successful. The probability of success is estimated to be 55%. Enter your answers with two decimals, when applicable. a1) What is the expected NPV of the project? (2.5 pts) a2) Would you build the plant and if so, why? (2.5 pts) b) Suppose the plant can be sold to another manufacturer of perovskite-tandem cells for $90 million if the line is not successful. b1) Calculate the expected NPV. (2.5 pts) b2) Would you build the plant? (2.5 pts) Answer $ Answer $ Answer

a) A Korean-owned PV manufacturer (Qcells) plans to invest US\$100 milion into a perovskite-tandem cell pilot production line at its factory in South Korea The investment will produce cash flows with a PV of $160 million if the line is successful but only $60 millon if it is not successfut The probability of succes estumated to be 55%. Enter your answers with two decimals, when applicable a1) What is the expected NPV of the project? (2.5 pts) a2) Would you build the plant and if so, why? (2.5 pts) b) Suppose the plant can be sold to another manufacturer of perovskite-tandem cells for $90 million if the line is not successfut b1) Calculate the expected NPV (25 pts) b2) Would you build the plant? ( 25pts) Answer s Answer $