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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

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

-$64 million

Below average

0.20

-10 million

Average

0.50

12 million

Above average

0.20

22 million

Boom

0.05

32 million

What are the project's expected NPV:

standard deviation:

coefficient of variation:

Enter your answers for the NPV and standard deviation in millions. For example, an answer of $1.24 million should be entered as 1.24, not 1,240,000. Do not round intermediate calculations. Round your answers to two decimal places.

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