c. Suppose the CFO wants you to do a scenario analysis with different values for the...

  

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c. Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the net operating working capital (NOWC) requirement. She asks you to use the following probabilities and values in the scenario analysis: Scenario Probability Cost Savings Salvage Value NOWC Worst case 0.35 $72,000 $15,000 $30,000 Base case 0.35 $90,000 $20,000 $25,000 Best case 0.30 $108,000 $25,000 $20,000 Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer for expected NPV and for standard deviation to the nearest cent and for coefficient of variation to two decimal places. E(NPV): ONPV CV: Would you recommend that the project be accepted? Select c. Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the net operating working capital (NOWC) requirement. She asks you to use the following probabilities and values in the scenario analysis: Scenario Probability Cost Savings Salvage Value NOWC Worst case 0.35 $72,000 $15,000 $30,000 Base case 0.35 $90,000 $20,000 $25,000 Best case 0.30 $108,000 $25,000 $20,000 Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer for expected NPV and for standard deviation to the nearest cent and for coefficient of variation to two decimal places. E(NPV): ONPV CV: Would you recommend that the project be accepted? Select

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