The managers of Merton Medical Clinic are analyzing a proposed project. The projects most likely NPV is $120,000, but as evidenced by the following NPV distribution, there is considerable risk involved: Probability 0.05 0.20 0.50 0.20 0.05 NPV ($700,000) (250,000) 120,000 200,000 300,000 a. What: are the projects expected NPV and standard deviation of NPV? b. Should the base case analysis use the most likely NPV or the expected NPV? Explain your answer.

**How do would you set this up in Excel and what would the formulas be?