An auto plant that costs $$200$ million to build can produce a line of flex$-$fuel cars that will

produce cash flows with a present value of $$280$ million if the line is successful but only $$90$

million if it is unsuccessful. You believe that the probability of success is only about $40\%.$ 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.

a$-2.$ Would you build the plant?

Suppose that the plant can be sold for $$150$ million to another automaker if the auto line is

not successful.

b$-1.$ 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$-2.$ Would you build the plant?

Answer is complete but not entirely correct.