Question: Given the following, what is the project's standard deviation?The Carlisle Corporation is considering a proposed project for its capital budget. The company estimates that the

 Given the following, what is the project's standard deviation?The Carlisle Corporation

Given the following, what is the project's standard deviation?The Carlisle Corporation is considering a proposed project for its capital budget. The company estimates that the project's NPV is $5 million. This estimate assumes that the economy and market conditions will be average over the next few years. The company's CFO, however, forecasts that there is only a 40% chance that the economy will be average. Recognizing this uncertainty, she has also performed the following scenario analysis: e average. Rer conditions with Posed projecte Economic Scenario Recession Below Average Average Above Average Boom Probability of Outcome 0.05 0.25 0.40 0.25 0.05 NPV ($28 million) (10 million) 5 million 8 million 15 million A $15.65 B $12.78 C $10.04 D $21.37

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