Question
The managers of Hewlett Medical Clinic are analyzing a proposed project. The project's most likely NPV is $130,000, but as evidenced by the following NPV
The managers of Hewlett Medical Clinic are analyzing a proposed project. The project's most likely NPV is $130,000, but as evidenced by the following NPV distribution, there is considerable risk involved:
| Probability | NPV |
| 0.05 | ($800,000) |
| 0.20 | (250,000) |
| 0.50 | 130,000 |
| 0.20 | 200,000 |
| 0.05 | 400,000 |
What is the project's standard deviation of NPV?
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Principles Of Macroeconomics
Authors: Frank, Bernanke, Antonovics, Heffetz
3rd Edition
1259117162, 9781259117169
