Butlersville Company is considering a capital proposal that has an expected net present value of $3,000. The

Question:

Butlersville Company is considering a capital proposal that has an expected of $3,000. The periodic cash inflows are normally distributed with a standard deviation of $500 each period. The initial cash outflow has a zero standard deviation. The company's weighted-average is 12%, and the capital project has an expected life of 8 years. The periodic cash inflows are expected to be independent of one another.
Required:
Compute the standard deviation of the expected of the investment. Net Present Value
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