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A company is evaluating a new project. The project's NPV (in millions) under various economic scenarios and those scenario probabilities are shown below. Case Probability
A company is evaluating a new project. |
The project's NPV (in millions) under various economic scenarios and those scenario probabilities are shown below. |
Case | Probability | NPV |
Worse | 0.20 | ($43.10) |
Base (likely) | 0.50 | $10.40 |
Best | 0.30 | $63.90 |
How much is the "Coefficient of Variation" of the net present value of this project? |
Enter your answer in the following format: 1.23; Hint: Answer is between 2.16 and 2.59 |
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