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PLEASE ANSWER ALL QUESTIONS SO I CAN UPVOTE POSITIVELY. THANK YOU SO MUCH AND HAVE A HAPPY HOLIDAYS. Along with the sensitivity analysis, Tanya is
PLEASE ANSWER ALL QUESTIONS SO I CAN UPVOTE POSITIVELY. THANK YOU SO MUCH AND HAVE A HAPPY HOLIDAYS.
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 Probability (P;) Outcome NPV; Pessimistic $-5.62 million 0.35 Most likely $7.94 million 0.30 Optimistic $16.45 million 0.35 Probability Data for z 0.03 0.06 0.09 Z 0.4 0.3336 0.3228 0.3121 0.6 0.2643 0.2546 0.2451 0.8 0.2033 0.1949 0.1867 1.0 0.1515 0.1446 0.1379 Complete the missing information in Tanya's report: The expected net present value of the project is $6.17 million million. Assuming that probability distribution is Standard deviation of the net present value (the NPV of the project is likely to vary by) normal, the value of z is Thus, the project has a chance to generate an NPV of less than $0
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