Question: A company is evaluating a new project. The project's NPV (in millions) under various economic scenarios and those scenario probabilities are shown below. Case Probability
A company is evaluating a new project. The project's NPV (in millions) under various economic scenarios and those scenario probabilities are shown below.
Case Probability NPV Worse 0.30 ($43.10) Base (likely) 0.50 $10.40 Best 0.20 $63.90
How much is the "Expected NPV" (net present value) of this project (in millions)? Enter your answer in the following format: + or - 1.23;
Hint: Answer is between 4.49 and 5.56
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