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What are the project expected NPV and standard deviation

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Reference no: EM132801841

Question - 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

0.20 250,000

0.50 120,000

0.20 200,000

0.05 300,000

Required -

a. What are the project's expected NPV and standard deviation of NPV? Please show calculations and formulas to each?

Reference no: EM132801841

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