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	$17,000	$26,000
Base case	0.35	$90,000	$22,000	$21,000
Best case	0.30	$108,000	$27,000	$16,000

Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Round your answers to two decimal places.

E(NPV) = $

σNPV = $

CV =

Would you recommend that the project be accepted?

-Select-yes or no

Answer rating: 100% (QA)

ScenerioProbabilityPCost savingASalvage valueBNOWCDA... View the full answer