Calculate the project expected npv-standard deviation

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Reference no: EM131973351

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 Recession 0.05 Below average 0.20 Average 0.50 Above average 0.20 Boom 0.05 NPV ($70 million) (25 million) 12 million 20 million 30 million Calculate the project’s expected NPV, standard deviation, and coefficient of variation.

Reference no: EM131973351

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