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 $270 million if the line is successful but only $120 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. enter answer in millions

Expected NPV:

Suppose that the plant can be sold for $160 million to another automaker if the auto is not successful.

b-1. Calculate the expected NPV. enter answer in millions rounded in one decimal place

Expected NPV: