Attempts $$ Average $/3$

$7.$ Problem $12\mathrm{.}07($Scenario Analysis$)$

Huang Industries is considering a proposed project whose estimated NPV is $$12$ million. This estimate assumes that economic conditions will be "average." However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results:

$\backslash$table$[[$Economic ScenarioProbability of Outcome,NPV$,],[$Recession$,0\mathrm{.}05,$ million