Scenario analysis Huang Industries is considering a proposed project whose estimated NPV is $12 million This estimate assumes that economic conditions will be average However the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results Economic Scenario Probability of Outcome NPV Recession 0 05 $74 million Below average 0 20 $22 million Average 0 50 12 million Above average 0 20 14 million Boom 0 05 40 million Calculate the project's expected NPV, standard deviation, and coefficient of variation Round your answers to two decimal places Enter your answers for the project's expected NPV and standard deviation in millions For example, an answer of $13,000,000 should be entered as 13 E(NPV) $ million NPV $ million CV

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Question: Scenario analysis Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be average. However

Scenario analysis

Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be "average." However the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results:

Economic Scenario	Probability of Outcome	NPV
Recession	0.05	- $74 million
Below average	0.20	- $22 million
Average	0.50	12 million
Above average	0.20	14 million
Boom	0.05	40 million

Calculate the project's expected NPV, standard deviation, and coefficient of variation. Round your answers to two decimal places. Enter your answers for the project's expected NPV and standard deviation in millions. For example, an answer of $13,000,000 should be entered as 13.

E(NPV)	= $ million
_NPV	= $ million
CV	=

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