Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate...
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Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be "average." However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results:
| Economic Scenario | Probability of Outcome | NPV |
| Recession | 0.05 | ($86 million) |
| Below average | 0.20 | (28 million) |
| Average | 0.50 | 12 million |
| Above average | 0.20 | 18 million |
| Boom | 0.05 | 40 million |
Calculate the project's expected NPV, standard deviation, and coefficient of variation. Enter your answers for the project's expected NPV and standard deviation in millions. For example, an answer of $13,000,000 should be entered as 13. Do not round intermediate calculations. Round your answers to two decimal places.
| E(NPV): | million |
| NPV: | million |
| CV: |
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