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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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