Brandt Enterprises is considering a new project that has a cost of $5,000, and the CFO conducted a scenario analysis before presenting the project to the board of directors.

As the assistant to CFO, what is your interpretation 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, do you suggest The CFO come to a decision of the project? If not, what should the CFO do to make the final decision?

\begin{tabular}{|l|c|c|l|} \hline & Probability & NPV & \\ \hline Best Case & 25% & $353.4 & \\ \hline Most Likely & 50% & $117.62 & \\ \hline Worst Case & 25% & $304.61 & \\ \hline & & $71.01 & = Exp. NPV \\ \hline & & 237.27 & = Standard Deviation \\ \hline \end{tabular}