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Part V: Scenario Analysis Use this information to answer questions 28-30. Suppose BeatKat Enterprises management team decides to do a scenario analysis. They want you

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Part V: Scenario Analysis Use this information to answer questions 28-30. Suppose BeatKat Enterprises management team decides to do a scenario analysis. They want you to calculate the expected NPV, standard deviation, and coefficient of variation for a new project. (These are not the NPV's that you calculated earlier). They give you the following data: Best case has a 10% probability and has an NPV of $25 M. Base case has a 65% probability and has an NPV of $15M. Worst case has a 25% probability and has an NPV of -$25M. QUESTION 30 Use the information given for part V; Scenario analysis. What is the coefficient of variation of the NPVs of this project? A. 2.25 B.2.36 OC. 3.02 D.3.18 QUESTION 31 A project that has a coefficient of variation of NPVs of 6.7 is less risky than a project that has a coefficient of variation of NPVs of 2.1. True False

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