The manager of GreenTech has asked you to conduct an in-depth risk analysis of undertaking the project. You discover that the price for which the scooter is sold is a crucial factor affecting the NPV of the green tech company's project. To assess the risk associated with the project, you run a simulation study. You assume that the price of the scooter follows a normal distribution with a mean of $2500 and a standard deviation of $500. The simulation results show that the standard deviation of the NPV is $2.3 million. 

Discuss the implications of these findings in terms of the project's risk profile and compare them to your initial NPV calculation.

Answer rating: 100% (QA)

Answer Explanation i The simulation study indicates that the projects NP... View the full answer