Question: Question 2:River Hospital is evaluating a project under three possible scenarios (Worst Case, Most likely Case and Best Case). The worst case scenario will occur
Question 2:River Hospital is evaluating a project under three possible scenarios (Worst Case, Most likely Case and Best Case). The worst case scenario will occur with a probability of .2, the most likely case with a probability of .6 and the best case with a probability of .2. The NPV for the worst case is -16,975, the most likely case 21,000, and the best case 63,841.
a.Write down the equation with the numbers needed to calculate the project's expected NPV? ( Show ALL your work by typing in the calculations and demonstrating the final answer. For example, NPV = ## + ## / ## OR by taking a snapshot of the excel formulas ) (5 pts)
b.Question 2 (Continued): The project's expected NPV is? (Show ALL your work by typing in the calculations and demonstrating the final answer. For example, expected NPV = ## + ## / ## OR by taking a snapshot of the excel formulas) (3 pts)
c.Question 2 (Continued): Write down the equation with the numbers needed to calculate the project's standard deviation of the expected NPV? (Show ALL your work by typing in the calculations and demonstrating the final answer. For example, standard deviation = ## + ## / ## OR by taking a snapshot of the excel formulas ) (5 pts)
d.Question 2 (Continued): What is the project's standard deviation of the expected NPV? (Show ALL your work by typing in the calculations and demonstrating the final answer. For example, NPV = ## + ## / ## OR by taking a snapshot of the excel formulas)(3 pts)
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