Question: Ch 12: Assignment - Cash Flow Estimation and Risk Analysis Back to Assignment Attempts 1 0 Keep the Highest 1/3 5. Problem 12.07 (Scenario Analysis)

 Ch 12: Assignment - Cash Flow Estimation and Risk Analysis Back

Ch 12: Assignment - Cash Flow Estimation and Risk Analysis Back to Assignment Attempts 1 0 Keep the Highest 1/3 5. Problem 12.07 (Scenario Analysis) E eBook Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be "average." However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results: Economic ScenarioProbability of Outcome NPV Recession 0.05 ($58 million) Below average 0.20 (14 million) Average 0.50 12 million Above average 0.20 16 million Boom 0.05 26 million Calculate the project's expected NPV, standard deviation, and coefficient of variation. Enter your answers for the project's expected NPV and standard deviation in millions. For example, an answer of $13,000,000 should be entered as 13. Do not round intermediate calculations. Round your answers to two decimal places. million E(NPV): ONPV: million CV: Grade it Now Save & Continue Continue without saving

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