What are the project’s expected NPV and standard deviation of NPV? Should the base case analysis use the most likely NPV or expected NPV?

Healthplan northwest needs a brand new computer worth $1 million to help them track their patients

The average expected project net profit (NPV) refers to the outcome expected when cash flows are replicated multiple times using different variables. To determine how likely the actual results will differ from the predicted NPV, the standard deviation of the NPV should be used. For the base case analysis, you should choose to use the most likely or modal NPV. It is an estimate of what could happen in any given year, month, depending on all relevant information, such as market conditions, economic trends and other factors.

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