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

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Scenario Analysis Shao Industries is considering a proposedproject for its capital budget. The company estimates the project'sNPV is $12 million. This estimate assumes that the economy andmarket conditions will be average over the next few years. Thecompany's CFO, however, forecasts there is only a 50% chance thatthe economy will be average. Recognizing this uncertainty, she hasalso performed the following scenario analysis: Economic ScenarioProbability of Outcome NPV Recession 0.05 -$60 million Belowaverage 0.20 -14 million Average 0.50 12 million Above average 0.2016 million Boom 0.05 40 million What are the project's expectedNPV, standard deviation, and coefficient of variation? Enter youranswers for the NPV and standard deviation in millions. Forexample, an answer of $1.24 million should be entered as 1.24, not1,240,000. Do not round intermediate calculations. Round youranswers to two decimal places. E(NPV) $ million ?NPV $ millionCVNPV

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Scenario Analysis Shao Industries is considering a proposedproject for its capital budget. The company estimates the project'sNPV is $12 million. This estimate assumes that the economy andmarket conditions will be average over the next few years. Thecompany's CFO, however, forecasts there is only a 50% chance thatthe economy will be average. Recognizing this uncertainty, she hasalso performed the following scenario analysis: Economic ScenarioProbability of Outcome NPV Recession 0.05 -$60 million Belowaverage 0.20 -14 million Average 0.50 12 million Above average 0.2016 million Boom 0.05 40 million What are the project's expectedNPV, standard deviation, and coefficient of variation? Enter youranswers for the NPV and standard deviation in millions. Forexample, an answer of $1.24 million should be entered as 1.24, not1,240,000. Do not round intermediate calculations. Round youranswers to two decimal places. E(NPV) $ million ?NPV $ millionCVNPV