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 ($72 million) Below average 0.20 (12 million) Average 0.50 12 million Above average 0.20 18 million Boom 0.05 38 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.   is there a way to do the standard deviation in excel? i am having trouble with the formula

I think the payback periods are correct, I just need the different cash flows of each year + the final question at the bottom. Thank you.

Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital (and even negative), in which case it will be rejected. Year Cash flows r=13.00% 20.64% 18.35% 21.50% 19.32% 22.78% 0 -$1,000 1 $750 2 $600 3 $120

Blue Llama Mining Company is analyzing a project that requires an initial investment of $3,225,000. The project’s expected cash flows are: Year Cash Flow Year 1 $325,000 Year 2 –100,000 Year 3 425,000 Year 4 500,000   1. Blue Llama Mining Company’s WACC is 7%, and the project has the same risk as the firm’s average project. Calculate this project’s modified internal rate of return (MIRR): 17.53%   -20.06%   22.14%   16.61%   2. If Blue Llama Mining Company’s managers select projects based on the MIRR criterion, they should accept or reject this independent project.   3. Which of the following statements about the relationship between the IRR and the MIRR is correct? A typical firm’s IRR will be equal to its MIRR.   A typical firm’s IRR will be less than its MIRR.   A typical firm’s IRR will be greater than its MIRR.

1. John approached you with a business proposition to invest in a project. The Annual Cash Flows (CF) are uncertain. However, the following probability distribution provides you with expectations: Probability P(CF) Probable Cash Flow (CF) $80.000 $140,000 $180,000 15 55 30 What is the expected Annual Cash Flow from this project? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). ... BIUS Paragraph Arial 10pt A 10:49 PM a 60F Cloudy 5/16/2022 P Type here to search 5 6. 8O

The risk-free rate of a capital-budgeting project a company wants to undergo is 5% and the expected market rate of return is 10%. The company has a beta of 0.3 and the project being evaluated has risk equal to the average project that the company has accepted in the past. Using the IRR method, determine an appropriate hurdle rate according to CAPM.

Adam Andler Corp is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. This is just one of many projects for the firm, so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. WACC or cost of capital Net investment cost (depreciable basis) The salvage value of its equipment No other fixed assets will be acquired for following years The company will require an increase in net working capital at the $10,000 beginning The company will liquidate all working capital at the end of the project -10,000 Units sold (constant through years) 60,000 $30.00 $50,000 $17.00 Average price per unit, Year 1 Fixed operating…

A company puts together a set of cash flow projections and calculates an IRR of 25% for the project. The firm's cost of capital is about 10%. The CEO maintains that the favorability of the calculated IRR relative to the cost of capital makes the project an easy choice for acceptance and urges management to move forward immediately. i. Should this project be evaluated using different standards? ii. How does the possibility of bankruptcy as a result of the project affect the analysis? iii. Are capital budgeting rules still appropriate?

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 ($34 million) Below average 0.20 (16 million) Average 0.50 12 million Above average 0.20 16 million Boom 0.05 28 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 σNPV: million CV:

You are considering investing in a project with the following possible outcomes: Probability of Investment States Occurrence Returns State 1: Economic boom 18% 20% State 2: Economic growth 42% 16% State 3: Economic decline 30% 3% State 4: Depression 10% -25% Calculate the expected rate of return and standard deviation of returns for this investment, respectively. O 7.35%, 12.99% O2.18%, 1.69% O 8.72%, 12.99% O3.50%, 1.69%