Project expected npv and standard deviation of npv

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The managers of New 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)

0.20                                                                 (250,000)

0.50                                                                   120,000

0.20                                                                   200,000

0.05                                                                   300,000

Need the project's expected NPV and standard deviation of NPV.

Would I use the base case analysis use the most likely NPV or expected NPV?  Explain your answer.

Please show work.

Reference no: EM132199949

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