A colleague recommends a shortcut to value the company in the question in attached photo. Rather than compute each scenario separately, the colleague recommends averaging each input, such that growth equals 4 percent and ROIC equals 12 percent. Will this lead to the same enterprise value as you found in the question attached in the photo? Which method is correct? Why?

You decide to value a steady-state company using probability-weighted scenario analysis. In scenario 1, NOPLAT is expected to grow at 6 percent, and ROIC equals 16 percent. In scenario 2, NOPLAT is expected to grow at 2 percent, and ROIC equals 8 percent. Next year's NOPLAT is expected to equal $100 million, and the weighted average cost of capital is 10 percent. Using the key value driver formula, what is the enterprise value in each scenario? If each scenario is equally likely, what is the enterprise value for the company