Calculate the expected NPV

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Reference no: EM131972726

An auto plant that costs $170 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $240 million if the line is successful but only $80 million if it is unsuccessful. You believe that the probability of success is only about 50%. You will learn whether the line is successful immediately after building the plant.

Calculate the expected NPV.

Reference no: EM131972726

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