1) You are sent the project with a positive NPV = $ 12 million. Your wisdom dictates which you analyze this project making the supposition that economy may change. You incorporate this uncertainty with the given information:

State of Economy p(outcome) NPV
Depression 0.05 - $ 70 million
Poor 0.20 - $ 25 million
Average 0.50 $ 19 million
Better than average 0.20 $ 20 million
A Boom 0.05 $ 30 million

i) find out the coefficient of variation

ii) NPV using your scenario

Requirements

2) Brian Porter's net worth is= $110,000, excluding his home. His liabilities of= $50,000 include all of his credit card balances and = balance due on his auto loan and home improvement loan. His townhouse has the market value of= $220,000 and he owes= $190,000 to his mortgage company. Compute Brian's debt-to-equity ratio?