XYZ, Inc. is considering a capital budgeting project under three scenarios.

•  If conditions are excellent, the NPV of the project is projected to be $3,000; 
• under fair conditions, the NPV is projected at $950; and 
• under unfavorable conditions, the NPV is projected at ($600).  
• 
  

The probabilities of these three conditions are 30%, 50% and 20%, respectively. 

 Calculate the standard deviation rounded to the nearest whole dollar amount

Answer rating: 100% (QA)

In order to calculate the standard deviation we first need to calculate the expected ... View the full answer