Problem 11-11 Scenario Analysis Shao Industries is considering a proposed project for its capital budget. The company estimates the project's NPV is $12 million. This estimate assumes that the economy and market conditions will be average over the next few years. The company's CFO, however, forecasts there is only a 50% chance that the economy will be average. Recognizing this uncertainty, she has also performed the following scenario analysis: Economic Scenario Probability of Outcome NPV Recession 0.05 -$46 million Below average 0.20 -20 million Average 0.50 12 million Above average 0.20 14 million Boom 0.05 38 million What are the project's expected NPV, standard deviation, and coefficient of variation? Enter your answers for the NPV and standard deviation in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to two decimal places. E(NPV) $ million NPV $ million CVNPV

Problem 11-11 Scenario Analys s Shao Industries is considering a proposed project for its capital budget. The company estimates the project's NPV is $12 mill on. This estimate assumes that the economy and market conditions wll be average over the next few years. The company's CFO however, forecasts there is only a 50% dance that the economy wlll be average. Recognizing this uncertainty, she has also performed the following scenario analysis: Economic Probability of Scenario Outcome 0.05 0.20 D.50 D.20 0.05 NPY -$45 million Belaw average Average Above average Boom 20 nillian 12 millian 14 millian 38 million What are the pojct's exprcted NPV, standard deviation, and cafficinnt of variation? Enter your answers far the NPV and standard deviatian in millions. For example, an answrrof $1.2 million should bo entered as 1.2, no 1,200,000. D not round interrnediate calculations. Round your answers to two decine places E(NPV) ONPV million