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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 below.
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 Worst Base Best Probability 0.25 0.50 0.25 NPV ($27.8) 15.0 57.8 a) What is the expected NPV? Formula: E(NPV)= (Pi * NPVi) (3 points) b) What is the standard deviation of NPV? (3 points) Formula: = (NPV NPV)?P
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