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Base Case NPV NPV (Millions of dollars) Base Case Price -30 30 -24 -18 -12 -60 6 12 18 24 CHANGES IN SELLING PRICE (Percent)

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Base Case NPV NPV (Millions of dollars) Base Case Price -30 30 -24 -18 -12 -60 6 12 18 24 CHANGES IN SELLING PRICE (Percent) This curve imples that the project is very sensitive to changes in the price of the product. The project's NPV is likely to become negative if the price for which the product can be sold decreases by Along with the sensitivity analysis, Taliba is including a scenario analysis for the project in her report, giving the probability of the project generating a negative NPV. Her report includes the following information about the scenario analysis: Outcome Pessimistic Data Collected NPV) Probability (P) -$3.50 million 0.20 $5.62 million 0.45 $11.34 million 0.35 Most likely Optimistic Probability Data for z 2 0.03 0.06 0.09 -1.0 0.1515 0.1446 0.1379 -0.8 0.2033 0.1949 0.1867 -0.6 0.2643 0.2546 0.2451 0.3338 0.3228 0.3121 Complete the missing information in Taliba's report: (Note: Round your answers to two decimal places.) million The expected net present value of the project is Standard deviation of the net present value (the NPV of the project is likely to vary by) $ Assuming that probability distribution is normal, the value of z is Thus, the project has a chance to generate an NPV or less than $0. Grade It Now

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