compute cv, Financial Accounting

 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                   
    0.2             - $250,000                   
    0.5               $120,000                   
    0.2              $200,000                   
    0.05            $300,000                   
                           
a.    What are the project's expected NPV and standard deviation of NPV?

b.    Compute CV?

c. Should the base case analysis use the most likely NPV or expected NPV? Explain your answer.

Posted Date: 3/14/2013 3:54:31 AM | Location : United States







Related Discussions:- compute cv, Assignment Help, Ask Question on compute cv, Get Answer, Expert's Help, compute cv Discussions

Write discussion on compute cv
Your posts are moderated
Related Questions
Explain the term- Not-for-profit organisations There are many organisations that don't exist mainly for the pursuit of profit. Instance include: ?charities ?clubs and ass

1. Complete a horizontal analysis using the dollar and percent change in the following items from the preceding year to the current year: (one typed page: use a table format with f

1. Consider the following balance sheet: Best Care HMO                  Balance Sheet               June 30, 2007 Assets  / Current Assets*


According to the Solow model, how would each of the following affect consumption per worker in the long run (i.e. in the steady state)? Draw a figure and explain. a. The destruc

Stepped Up Basis -Usually, the foundation of property acquired by INHERITENCE, BEQUEST or device from a DECENDANT is the FAIR MARKET VALUE of the property on the date of decendant'

Q. Illustrate Accounting ramifications? Accounting ramifications i) Restatement ii) Unable to file on timely basis while go back and determine what periods are effected

Individuals commonly prefer possession of cash immediately or in the present moment quite than the same amount at any time in the future. Such time preference is fundamentally due

The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm's stock price

Funding the investment by an issue of ordinary shares could tender several advantages to Springbank plc. Gearing would drop to 47% (3·5/7·4) fewer than half of the sector average o