question archive The managers of Merton Medical Clinic are analyzing a proposed project
The managers of Merton Medical Clinic are analyzing a proposed project
Subject:AccountingPrice: Bought3
The managers of Merton Medical Clinic are analyzing a proposed project. The project's most likely NPV is $120,000, but as evidenced by the following NPV distribution, there is considerable risk involved:
Probability NPV
0.05 700,000
0.20 250,000
0.50 120,000
0.20 200,000
0.05 300,000
a. What are the project's expected NPV and standard deviation of NPV?
