Question 6 5 Marks Talbot Industries is considering a proposed project for its capital budget. The company estimates the project's NPV is R12 million. This estimate assumes that the economy and market conditions will be average over next few years. The company's CFO, however, forecasts there is only a 50% chance that the economy will be average. Recognising this uncertainty, she has also performed the following scenario analysis: Economic Scenario Recession Below Average Average Above average Boom Probability of Outcome 0.05 0.20 0.50 0.20 0.05 NPV -R70 million -25 million 12 million 20 million 30 million Required: What is the project's: 6.1. 6.2. Expected NPV Standard deviation, and Coefficient of variance? (2) (2) (1) 6.3