Question: Along with the sensitivity analysis, Anusha is including a scenario analysis for the project in her report, giving the probability of the project generating a
Along with the sensitivity analysis, Anusha is including a scenario analysis for the project in her report, giving the probability of the project generating a negative NPV. Her report includes the following information about the scenario analysis: Data Collected Outcome NPVj Probability (Pj ) Pessimistic -$3.50 million 0.20 Most likely $5.62 million 0.45 Optimistic $11.34 million 0.35 Probability Data for z z 0.03 0.06 0.09 -1.0 0.1515 0.1446 0.1379 -0.8 0.2033 0.1949 0.1867 -0.6 0.2643 0.2546 0.2451 -0.4 0.3336 0.3228 0.3121 Complete the missing information in Anusha's report: (Note: Round your answers to two decimal places.) The expected net present value of the project is . Standard deviation of the net present value (the NPV of the project is likely to vary by) $ million. Assuming that probability distribution is normal, the value of z is . Thus, the project has a chance to generate an NPV of less than $0
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