An auto plant that costs $200 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $260 million if the line is successful but only $120 million if it is unsuccessful. You believe that the probability of success is only about 45%. 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 answer in millions.)

Expected NPV ___ million

a-2.Would you build the plant?

• Yes
• No

Suppose that the plant can be sold for $170 million to another automaker if the auto line is not successful.

b-1.Calculate the expected NPV.(Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 1 decimal place.)

Expected NPV ___ million

b-2.Would you build the plant?

• Yes
• No