The directors of Dorset Limited are trying to decide between three projects. They can only choose...

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The directors of Dorset Limited are trying to decide between three projects. They can only choose one option. A junior member of your team has calculated the NPV for each project based on: - the best case scenario - the worst case scenario Please complete the following (using appropriate Excel formula where applicable): Enter the missing probability for the worse case NPV for Project Z Calculate the expected value of the NPVs for each project Best case NPV Worst case NPV Expected value identify which project gives the highest expected NPV Project A Probability 70% 30% NPV 555,000 222,000 The directors should invest in....| Project B Probability 65% 35% NPV 612,000 88,000 Project C Probability 75% NPV 925,000 (166,000) The directors of Dorset Limited are trying to decide between three projects. They can only choose one option. A junior member of your team has calculated the NPV for each project based on: - the best case scenario - the worst case scenario Please complete the following (using appropriate Excel formula where applicable): Enter the missing probability for the worse case NPV for Project Z Calculate the expected value of the NPVs for each project Best case NPV Worst case NPV Expected value identify which project gives the highest expected NPV Project A Probability 70% 30% NPV 555,000 222,000 The directors should invest in....| Project B Probability 65% 35% NPV 612,000 88,000 Project C Probability 75% NPV 925,000 (166,000)

Answer rating: 100% (QA)

To complete the missing probability for the worst case NPV for Project C we can use the fact that th... View the full answer