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Scenario Analysis Shao Industries is considering a proposed project for its capital budget....

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Accounting

Scenario Analysis
Shao Industries is considering a proposed project for its capital budget. The company estimates the project's NPV is $12 million. This estimate assumes that the economy and market conditions will be average over the next few years. The company's CFO, however, forecasts there is only a 50% chance that the economy will be average. Recognizing this uncertainty, she has also performed the following scenario analysis:
Economic Scenario Probability of Outcome NPV
Recession 0.05-$84 million
Below average 0.20-16 million
Average 0.5012 million
Above average 0.2022 million
Boom 0.0536 million
What are the project's expected NPV, standard deviation, and coefficient of variation? Enter your answers for the NPV and standard deviation in millions. For example, an answer of $1.24 million should be entered as 1.24, not 1,240,000. Do not round intermediate calculations. Round your answers to two decimal places.
E(NPV): $
million
\sigma NPV: $
million
CVNPV:

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