Compute the cv, The managers of Merton Medical Clinic are

Compute the cv

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Reference no: EM13291649

The managers of Merton Medical Clinic are analyzing a proposed project. The project's most likely NPV is $120,000, but, as evidenced by the following NPV distribution, there is considerable risk involved:

Probability NPV
0.05 -$700,000
0.2 -$250,000
0.5 $120,000
0.2 $200,000
0.05 $300,000

a.) What are the project's expected NPV and standard deviation of NPV?
b.) Compute the CV?
c.) Should the base case analysis use the most likely NPV or expected NPV? Explain your answer.

Reference no: EM13291649

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Compute the cv

Reference no: EM13291649

Reference no: EM13291649

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