Compute the project expected npv and standard deviation

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Reference no: EM1376282

Huang Industries is planning a proposed project whose estimated NPV is twelve million dollar. This estimate suppose that economic situations 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 ($70 million)
Below average 0.20 (25 million)
Average 0.50 12 million
Above Average 0.20 20 million
Boom 0.05 30 million

Compute the project's expected NPV, standard deviation, and coefficient of variation.

Reference no: EM1376282

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