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Financial Management Please use formula and get calculation in detail. Acme industries is considering a proposed...

Financial Management

Please use formula and get calculation in detail.

Acme industries is considering a proposed project whose estimated NPV is $12million.This estimate assumes that economic conditions will be average. However, the CFO wanted to do a scenario analysis and obtained the following results:

Economic Situation       Probability NPV

Recession 5% -$70 million

Below Average 20% -$20 million

Average 50%   $12 million

Above Average 20% $20 million

Boom 5% $30 million

Calculate the project’s expected NPV, standard deviation, and coefficient of variation. For the standard deviation please use MS Excel.

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