Question: You just started working at Apple Inc. and are asked to perform a scenario analysis for a new project with the following data. Base case:
You just started working at Apple Inc. and are asked to perform a scenario analysis for a new project with the following data. Base case: NPV = $750 with a probability of 0.60. Worst case: NPV = -$300 with a probability of 0.30. Best case NPV = $1,200 with a probability of 0.10. Calculate the expected NPV for the project. Then assume that the standard deviation for the project's NPV is $450 and solve for the project's coefficient of variation.
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