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Chapter 13: Show all calculations for parts I, II and III of Figure 13.2. Part I Outcome Prob. 0 1 2 3 4 NPV Best

Chapter 13:

Show all calculations for parts I, II and III of Figure 13.2.

Part I
Outcome Prob. 0 1 2 3 4 NPV
Best 25% ($1,000) $400 $600 $800 $1,300 $1,348.47
Base 50% ($1,000) $200 $400 $500 $600 $297.86
Worst 25% ($1,000) ($280) ($280) ($280) ($280) ($1,887.56)
WACC 10%
Expected NPV $14.16
Std. Dev. 1178.76143
Std. Dev. $1,178.76
Part II
CV 83.2524127

Outcome Prob. 0 1 2 3 4 NPV
Best 25% ($1,000) $400 $600 $800 $1,300 $1,348.47
Base 50% ($1,000) $200 $400 $500 $600 $297.86
Worst 25% ($1,000) ($280) $200 $0 $0 ($1,089.26)
Expected NPV $213.74
Std. Dev. 865.963655
Std. Dev. $865.96
CV 4.05155158
Part III
Option Value $199.58

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