Question: You can use Excel to solve the problem. Predicted Cash Flows ($) for Alternative Scenarios Scenario Probability 0 1 2 3 4 5 r/WACC 1st
You can use Excel to solve the problem.
| Predicted Cash Flows ($) for Alternative Scenarios | ||||||||
| Scenario | Probability | 0 | 1 | 2 | 3 | 4 | 5 | r/WACC |
| 1st Scenario | 15% | -10,000 | 4,761 | 7,000 | 8,000 | 21,000 | 30,000 | 11.00% |
| 2nd Scenario | 35% | -10,000 | 2,500 | 2,700 | 2,300 | 8,000 | 10,000 | 11.00% |
| 3rd Scenario | 15% | -12,000 | 400 | 900 | 200 | 1,900 | 5,000 | 11.00% |
| 4th Scenario | 35% | -$15,000 | 100 | 500 | 150 | 1,500 | 4,500 | 11% |
What is the projects expected NPV, its standard deviation, and its coefficient of variation?
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