Assume that the Financial manager of a firm calculated three NPVs mentioned below based on different sales forecast. Moreover, he believes there is a 25% chance of worst acceptance to occur, a 25% chance of excellent performance to occur, and a 50% chance of average acceptance to occur. Use the worst-, base-, and best-case NPVs and probabilities of occurrence to find the projects expected NPV, as well as the NPVs standard deviation and coefficient of variation. Base Worst Best NPV $2,200,243 -$1,213,189 $6,973,498

Q2 [05 marks] Assume that the Financial manager of a firm calculated three NPVs' mentioned below based on different sales forecast. Moreover, he believes there is a 25% chance of worst acceptance to occur, a 25% chance of excellent performance to occur, and a 50% chance of average acceptance to occur. Use the worst-, base-, and best-case NPVs and probabilities of occurrence to find the project's expected NPV, as well as the NPV's standard deviation and coefficient of variation. Base Worst Best NPV $2,200,243 -$1,213,189 $6,973,498