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An auto plant that costs $ 2 2 0 million to build can produce a line of flex - fuel cars that will produce cash

An auto plant that costs $220 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 $150 million if it is unsuccessful. You believe that the probability of success is only about 52%. 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 $190 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?

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