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000000 eBook Scenario Analysis Shao Industries is considering a proposed project for its capital budget. The company estimates the project's NPV is $12 million. This

image text in transcribed 000000 eBook Scenario Analysis Shao Industries is considering a proposed project for its capital budget. The company estimates the project's NPV is $12 million. This estimate assumes that the Oeconomy and market conditions will be average over the next few years. The company's CFO, however, forecasts there is only a 50% chance that the economy will be average. Recognizing this uncertainty, she has also performed the following scenario analysis: Economic Scenario Recession Below average Average Above average Boom NPV Probability of Outcome 0.05 -$88 million 0.20 -12 million 0.50 12 million 0.20 0.05 24 million 28 million What are the project's expected NPV, standard deviation, and coefficient of variation? Enter your answers for the NPV and standard deviation in millions. For example, an answer of $1.24 million should be entered as 1.24, not 1,240,000. Do not round intermediate calculations. Round your answers to two decimal places. E(NPV): $ million million ONPV CVNPV Qe Icon Key Check My Work (5 remaining)

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