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i need answer for second question An auto plant that costs $90 million to build can produce a new line of cars that will produce
i need answer for second question
An auto plant that costs $90 million to build can produce a new line of cars that will produce net cash flow of $20 million per year if the line is successful, but only $2 million per year if it is unsuccessful. You believe that the probability of success is about 80 percent. The auto plant is expected to have a life of 20 years and the opportunity cost of capital is 6 percent. What is the expected net present value of building the plant? Please state your answer in millions and in 2 decimal places. 98.11 Correct response: 98.110.02million If the plant could be sold for $135 million to another automaker in one year if the auto line is not successful, what is the expected net present value of building the plant? Please state your answer in millions and in 2 decimal places. Number million Section Attempt 1 of 1 VerifyStep by Step Solution
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