Question: Along with the sensitivity analysis, Elle is including a scenario analysis for the project in her report, giving the probability of the project generating a

Along with the sensitivity analysis, Elle 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

Complete the missing information in Elles report:

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.

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