Question: Part V. Scenario Analysis Use this information to answer questions 31- 34. Suppose BearKat Enterprises management team decides to do a scenario analysis. They want

 Part V. Scenario Analysis Use this information to answer questions 31-
34. Suppose BearKat Enterprises management team decides to do a scenario analysis.

Part V. Scenario Analysis Use this information to answer questions 31- 34. Suppose BearKat Enterprises management team decides to do a scenario analysis. They want you to calculate the expected NPV. standard deviation, and coefficient of variation for a new project. (These are not the NPV's that you calculated earlier). They give you the following data: Best case has a 25% probability and has an NPV of $29 M. Base case has a 55% probability and has an NPV of $12M. Worst case has a 20% probability and has an NPV of -$35M. . . QUESTION 31 Use the information given for part V; Scenario analysis. What is the expected NPV of this project? A. $15M B. $6.85M C. $4.5M D. $20M QUESTION 32 Use the information given for part V; Scenario analysis. What is the standard deviation of the NPVs of this project? A. $21.6M . $19.62M $22.08M D $38.14M

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!