The managers of Merton Medical Clinic are analyzing a proposed project.The project's most likely NPV is $120,000,
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The managers of Merton Medical Clinic are analyzing a proposed project.The project's most likely NPV is $120,000, but, as evidenced by the following NPV distribution, there is considerable risk involved:
ProbabilityNPV
0.05($700,000)
0.20(250,000)
0.50120,000
0.20200,000
0.05300,000
I need the project's expected NPV and standard deviation of NPV.
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