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Business, 30.10.2019 03:31 lrg34

An auto plant that costs $200 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $270 million if the line is successful but only $120 million if it is unsuccessful. you believe that the probability of success is only about 52%. you will learn whether the line is successful immediately after building the plant. calculate the expected npv.

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