An auto plant that costs $140 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $200 million if the line is successful but only $60 million if...

An auto plant that costs $140 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $200 million if the line is successful but only $60 million if it is unsuccessful. You believe that the probability of success is only about 40%. You will learn whether the line is successful immediately after building the plant.

a-1.
Calculate the expected NPV.
(Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)

a-2.
Would you build the plant?

Suppose that the plant can be sold for $135 million to another automaker if the auto line is not successful.
(Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)

b-1.
Calculate the expected NPV.

b-2.
Would you build the plant?