fm12 24 - which are summarized below Scenario Probability...

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Mini Case: 12 - 24 k. 2. What is the worst-case NPV? The best-case NPV? k. 3. Use the worst-, most likely, and best-case NPVs and probabilities of occurrence to find the project’s expected NPV, standard deviation, and coefficient of variation. Answer: We used a spreadsheet model to develop the scenarios (in thousands of dollars),
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Unformatted text preview: which are summarized below: Scenario Probability Unit Sales Unit Price NPV Best Case 25% 1600 $240 $278,965 Base Case 50% 1250 $200 $88,030 Worst Case 25% 900 $160 ($48,514) Expected NPV = $101,628 Standard Deviation = $116,577 Coefficient Of Variation = Std Dev / Expected NPV = 1.15...
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