Android Studio Gradle doesnt work after update , Gradle 0.4.0

Project is using an old version of android gradle plug-in. The minimum supported version is 0.5.0

Step 1: Change line in build.gradle from:

dependencies {
    classpath 'com.android.tools.build:gradle:0.4'
}

to

dependencies {
    classpath 'com.android.tools.build:gradle:0.5.+'
} 

Step 2

: In the <YourProject>.iml file, delete the entire<component name="FacetManager">[...]</component> tag.