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Imagine you consider three potential outcomes for a project: Base Case, Best Case, and Worst Case. For each potential outcome, you assign a probability that
Imagine you consider three potential outcomes for a project: Base Case, Best Case, and Worst Case. For each potential outcome, you assign a probability that the outcome occurs. The expected NPV would be the NPV for each outcome weighted by the probability that the outcome occurs. In practice, this is the same as just presenting the Base Case Scenario.
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