An auto plant that costs $130 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $190 million if the line is successful but only $50 million if it is unsuccessful. You believe that the probability of success is only about 50%. You will learn whether the line is successful immediately after building the plant.

a-1.Calculate theexpected NPV.(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.)

a-2.Would you build the plant?

Suppose that the plant can be sold for $125 million to another automaker if the auto line is not successful.(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.

b-2.Would you build the plant?