Question
ABC Corp. uses scenario analysis in order to determine its expected NPV. The base case, best case, and worst case scenarios and their probabilities are
ABC Corp. uses scenario analysis in order to determine its expected NPV. The base case, best case, and worst case scenarios and their probabilities are provided below. What is ABCs expected NPV and standard deviation of NPV?
| Scenerio | Probability | NPV |
| Worst Case | 0.3 | -6000 |
| Base case | 0.5 | 13000 |
| Best Case | 0.2 | 28000 |
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
