Question
You are doing a scenario analysis of a project with the following information: Scenario Probability NPV Base Case 50% $1,000 Best Case 30% $7,000 Worst
You are doing a scenario analysis of a project with the following information:
| Scenario | Probability | NPV |
| Base Case | 50% | $1,000 |
| Best Case | 30% | $7,000 |
| Worst Case | 20% | -$2,000 |
| Expected NPV |
| ??? |
| Standard Deviation of NPV |
| $3,341 |
| Coefficient of Variation of NPV |
| ??? |
What is the coefficient of variation of the projects NPV? (Hint: You need to compute the expected value of NPV first.)
Group of answer choices
0.66
1.52
1.10
2.22
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
