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:

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\mathrm{.}24$ million should be entered as $1\mathrm{.}24,$ not $1,240,000.$ Do not round intermediate calculations. Round your

answers to two decimal places.