Consider a new technology that would costs an immediate $100 million and another $100 million at the end of year 1. It is estimated that the technology will be successful with probability 50%. If successful, the technology will generate free cash flows of $80 million starting at the end of year 2 up to infinity. If unsuccessful, the technology will generate no cash flows.
Assuming a discount rate of 20%, what is the NPV of investing in this technology?