Shao Industries is considering a proposed project for its capital budget. The company estimates the projects NPV is $12 million. This estimate assumes that the economy and market conditions will be average over the next few years. The companys 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 (millions)
Recession	0.1	($60)
Below average	0.15	($25)
Average	0.5	$15
Above average	0.2	$25
Boom	0.05	$32

What is the projects standard deviation?

		$26.90
		$4.35
		$55.80
		$3.00
		$23.62