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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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