Question: NPV distribution, there is considerable risk involved Probability NPV 0.05 -$700,000 0.2 -$350,000 0.5 $250,000 0.2 $350,000 0.05 $450,000 a. What are the project's expected

NPV distribution, there is considerable risk involved

Probability

NPV

0.05

-$700,000

0.2

-$350,000

0.5

$250,000

0.2

$350,000

0.05

$450,000

a. What are the project's expected NPV and standard deviation of NPV?

b. Compute CV?

c. What decision is appropriate for this project using NPV, standard deviation and CV?

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