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13. Your company faces three possible economic scenarios. Under each scenario, a NPV is estimated with a probability of occurrence, as indicated in the table

13. Your company faces three possible economic scenarios. Under each scenario, a NPV is estimated with a probability of occurrence, as indicated in the table below.

case probability NPV
Worst 20% -30
Base 60% 10
Best 20% 50

a) What is the expected NPV? Formula: (Pi * NPVi)

b) What is the standard deviation of NPV?

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