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The managers of Tetron Medical Clinic are analyzing a proposed project. The following NPV distribution is given. Probability NPV 0.05 -$700,000 0.2 -$250,000 0.5 $120,000
The managers of Tetron Medical Clinic are analyzing a proposed project. The following NPV distribution is given.
Probability | NPV |
0.05 | -$700,000 |
0.2 | -$250,000 |
0.5 | $120,000 |
0.2 | $200,000 |
0.05 | $300,000 |
a. What is the project's expected NPV and standard deviation of NPV?
b. Compute CV?
c. What decision is appropriate for this project using NPV, standard deviation and CV?
Please show your work.
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