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Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the net operating

Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the net operating working capital (NOWC) requirement. She asks you to use the following probabilities and values in the scenario analysis:

Scenario
Probability
Cost Savings
Salvage Value
NOWC
Worst case
0.35
$72,000
$17,000
$26,000
Base case
0.35
$90,000
$22,000
$21,000
Best case
0.30
$108,000
$27,000
$16,000

Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Round your answers to two decimal places.

E(NPV) = $

σNPV = $

CV =

Would you recommend that the project be accepted?

-Select-yes or no

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