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12-7 SCENARIO ANALYSIS Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be average.

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12-7 SCENARIO ANALYSIS Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be "average. However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results: Economic Scenario Probability of Outcome NPV Recession ($ 70 million) Below average (25 million) Average 0.50 12 million Above average 20 million 30 million 0.05 0.20 0.20 Boom 0.05 Calculate the project's expected NPV, standard deviation, and coefficient of variation

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