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An auto plant that costs $50 million to build can produce a new line of cars that will produce net cash flow of $20 million

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An auto plant that costs $50 million to build can produce a new line of cars that will produce net cash flow of $20 million per year it the line is success, but only 3 million per year it is onducentul You believe that the probability of success is about 10 percent. The auto plant is expected to have a tle of 25 years and the opportunity cost of capital is 13 percent What is the expected ret present vite of bulling the plant? Number milion Section 11 Verily

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