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Calculate the variance and standard deviation of the NPV from both projects. Variance Probability NPV A NPV B 10% (39,780.00) (14,918.00) 20% (9,945.00) 2,486.00 40%
| Variance | ||||
| Probability | NPV A | NPV B | ||
| 10% | (39,780.00) | (14,918.00) | ||
| 20% | (9,945.00) | 2,486.00 | ||
| 40% | 19,890.00 | 19,890.00 | ||
| 20% | 49,725.00 | 37,294.00 | ||
| 10% | 79,560.00 | 54,698.00 | ||
| 100% | 99,450.00 | 99,450.00 |
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Step: 1
To calculate the variance and standard deviation of the net present value NPV from both projects we need to follow these steps Calculate the expected value of the NPV for each project This is the weig...
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Step: 2
Step: 3
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Managerial Economics Foundations of Business Analysis and Strategy
Authors: Christopher Thomas, S. Charles Maurice
12th edition
1260004759, 9781260004755, 78021715, 78021718, 78021901, 978-0078021909
