Question: Probability 1 0 % , NPV A is - 5 9 , 6 7 0 , NPV B is - 2 2 , 3 7
Probability NPV A is NPV B is
Probability NPV A is NPV B is
Probability NPV A is NPV B is
Probability NPV A is NPV B is
Probability NPV A is NPV B is
Probability NPV A is NPV B is
A Calculate the expected NPV for both projects. Can the question be resolved with this information alone?
B Calculate the variance and standard deviation of the NPVs for both projects. Which project appears to be riskier?
c Calculate the coefficient of variation for both projects. Does this change your opinion from part b
d Calculate the probability of a negative NPV for both projects.
e Which project should be accepted? Why?
Please show excel sheet with All formulas for each part.
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