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QUESTION 33 Use the information given for part V; Scenario analysis. What is the coefficient of variation of the NPVs of this project? A 225

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QUESTION 33 Use the information given for part V; Scenario analysis. What is the coefficient of variation of the NPVs of this project? A 225 B.3.22 C. 3.02 D.4.36 QUESTION 34 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 Part V: Scenario Analysis Use this information to answer questions 31- 34. Suppose BearKat 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 25% probability and has an NPV of $29 M. . Base case has a 55% probability and has an NPV of $12M. Worst case has a 20% probability and has an NPV of -$35M. 3

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