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Problem 10-25 Project Options(1.04) An auto plant that costs $220 million to build can produce a line of flextuel cars that will produce cash Flows

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Problem 10-25 Project Options(1.04) An auto plant that costs $220 million to build can produce a line of flextuel cars that will produce cash Flows with a present 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 learn whether the line is successful immediately after building the plant. a.1 Calculate the expected NPV( Negative amount should be indicated by a minus sign. Enter your answer in, millions rounded to 1 decimal place). a.2 Would you build the plan? Yes No 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(Negative amount should be indicated by a minus sign. Enter your answer in, millions rounded to 2 decimal places). b.2 Would you build the plan? Yes no

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