Question
Suppose your CFO wants you to do a scenario analysis. She asks you to use the following probabilities and NPV values. There is a 35.0%
Suppose your CFO wants you to do a scenario analysis. She asks you to use the following probabilities and NPV values. There is a 35.0% probability of the worst-case scenario occurring and if it does, the project will have an NPV of -$25,047. There is 45.0% probability of the base-case scenario taking place, in which case the project will earn an NPV of $8,838. Finally, there is 20.0% chance of the best-case scenario happening, in which case the NPV of the project will be $30,504. Calculate the projects standard deviation.
$31,058 | ||
$26,439 | ||
$27,630 | ||
$22,004 | ||
$20,955 |
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