Essay
Exhibit 11-1
A company is considering investing $1.2M in a facility to manufacture a new product. The product will have a five year life, after which the facility will be shut down. A pro forma cash flow sheet for this project, with forecasted production levels, unit prices, and production costs, is shown below:
![Exhibit 11-1 A company is considering investing $1.2M in a facility to manufacture a new product. The product will have a five year life, after which the facility will be shut down. A pro forma cash flow sheet for this project, with forecasted production levels, unit prices, and production costs, is shown below: -[Part 3] Refer to Exhibit 11-1.What is the standard deviation of the NPV What does it indicate](https://d2lvgg3v3hfg70.cloudfront.net/TB6954/11ea5c70_d2f5_865e_945b_39a69fd625a6_TB6954_00_TB6954_00_TB6954_00_TB6954_00_TB6954_00_TB6954_00.jpg)
-[Part 3] Refer to Exhibit 11-1.What is the standard deviation of the NPV
What does it indicate
Correct Answer:
Verified
Correct Answer:
Verified
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