Question: Use the given information and solve the followings Data Collected NPV, Outcome Pessimistic -$5.62 million Most likely $7.94 million Optimistic $16.45 million Z Probability Data
Use the given information and solve the followings
Data Collected NPV, Outcome Pessimistic -$5.62 million Most likely $7.94 million Optimistic $16.45 million Z Probability Data for z Probability (P) 0.35 0.30 0.35 0.03 0.06 0.09 -1.0 0.1515 0.1446 0.1379 -0.8 0.2033 0.1949 0.1867 -0.6 0.2643 0.2546 0.2451 -0.4 0.3336 0.3228 0.3121 Complete the missing information in Tanya's report: (Note: Round your answers to two decimal places.) 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) $_ Assuming that probability distribution is normal, the value of z is Thus, the project has a chance to generate an NPV of less than $0. million. 4
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Using the given data we can calculate the expected net present value ENPV of the project as follows ... View full answer
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