Solution-Calculate the project expected npv

Calculate the project expected npv

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Reference no: EM133146912

Question - Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be "average." However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results:

Economic Scenario	Probability of Outcome	NPV
Recession	0.05	($32 million)
Below average	0.20	(18 million)
Average	0.50	12 million
Above average	0.20	24 million
Boom	0.05	40 million

Required - Calculate the project's expected NPV, standard deviation, and coefficient of variation. Enter your answers for the project expected NPV and standard deviation in millions.

Reference no: EM133146912

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Calculate the project expected npv

Reference no: EM133146912

Reference no: EM133146912

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