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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 $40 million per year it the line is

An auto plant that costs $50 million to build can produce a new line of cars that will produce net cash flow of $40 million per year it the line is successful, but only $8.5 millionper year if it is unsuccessful. You believe that the probability of success is about 55 percent. The auto plant is expected to have a life of 14 years and the opportunity cost ofcapital is 9 percent. What is the expected net present value of building the plant? Please state your answer in millions and in 2 decimal places. 151.08 0 Correct: response: 151.08:0.02mi|lion If the plant could be sold for $125 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. N umber million
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