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show all work 12-7 SCENARIO ANALYSIS Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions
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12-7 SCENARIO ANALYSIS Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be "average." However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results: Economic Scenario Probability of Outcome NPV 0.05 Recession Below average Average Above average 0.20 0.50 0.20 ($70 million) (25 million) 12 million 20 million 30 million Boom 0.05 Calculate the project's expected NPV, standard deviation, and coefficient of variationStep by Step Solution
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