NPV (Millions of dollars) Base Case --- NPV Base Case Price -30 -24 -18 -12 -6 0 6 12 18 24 30 CHANGES IN SELLING PRICE (Percent) This curve implies 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 12% . Along with the sensitivity analysis, Tanya 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: Data Collected 0.4 Outcome Pessimistic Most likely Optimistic NPV; -$2.31 million $4.53 million $12.11 million Probability (Pi) 0.50 0.35 0.15 Probability Data for z 0.03 0.06 0.09 0.3336 0.3228 0.3121 0.26430.2546 0.2451 0.2033 0.1949 0.1867 0.1515 0.1446 0.1379 0.6 0.8 1.0 Complete the missing information in Tanya's report: The expected net present value of the project is $2.25 million . 5.18 million. 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 32.28% 31.21% chance to generate an NPV of less than $0. 32 290% NPV (Millions of dollars) Base Case --- NPV Base Case Price -30 -24 -18 -12 -6 0 6 12 18 24 30 CHANGES IN SELLING PRICE (Percent) This curve implies 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 12% . Along with the sensitivity analysis, Tanya 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: Data Collected 0.4 Outcome Pessimistic Most likely Optimistic NPV; -$2.31 million $4.53 million $12.11 million Probability (Pi) 0.50 0.35 0.15 Probability Data for z 0.03 0.06 0.09 0.3336 0.3228 0.3121 0.26430.2546 0.2451 0.2033 0.1949 0.1867 0.1515 0.1446 0.1379 0.6 0.8 1.0 Complete the missing information in Tanya's report: The expected net present value of the project is $2.25 million . 5.18 million. 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 32.28% 31.21% chance to generate an NPV of less than $0. 32 290%