Brandt Enterprises is considering a new project that has a cost of $1,000,000, and the CFO

conducted a scenario analysis before presenting the project to board of directors.

	Probability	NPV
Best Case	20%	$187.62
Most Likely	60%	$155.86
Worst Case	20%	-296.90
		= $46.57	= Exp. NPV
		186.4	= Standard Deviation

As the assistant to CFO, what is your analysis of the result of scenario analysis? How is the risk level of this project compared to prior projects given the average CV (coefficient of variation) of prior projects of the company is between 2.5 and 3. Given the scenario analysis result, what do you suggest do the next step with regard to the project?