Question: This curve implies that the project is not very sensitive to changes in cost of capital. The project's NPV is likely to stay positive if

 This curve implies that the project is not very sensitive to

This curve implies that the project is not very sensitive to changes in cost of capital. The project's NPV is likely to stay positive if the cost of capital increases to 15%. Along with the sensitivity analysis, Danielle is including a scenario analysis for the project in her report, giving the probability of the project generating a negative NPV. Her report includes the following information about the scenario analysis: \begin{tabular}{llc} \hline \multicolumn{3}{c}{ Data Collected } \\ \hline Outcome & NPVj & Probability (Pj) \\ Pessimistic & $3.50 million & 0.20 \\ Most likely & $5.62 million & 0.45 \\ Optimistic & $11.34 million & 0.35 \\ \hline \end{tabular} Complete the missing information in Danielle's report: The expected net present value of the project is Standard deviation of the net present value (the NPV of the project is likely to vary by) million

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