Question: In Problem 8.14 it turns out that the project manager overestimated the project NPV, and the best estimate is that now $mathrm{NPV}=$ 2,444$ with a

In Problem 8.14 it turns out that the project manager overestimated the project NPV, and the best estimate is that now $\mathrm{NPV}=\$ 2,444$ with a standard deviation of $\$ 1,500$. What is the probability that NPV could be 0 or less?

Data from problem 8.14

A project has an NPV of $\$ 3,444$ and a standard deviation of $\$ 1,780$. What is the probability that NPV could be 0 or less?

Step by Step Solution

3.36 Rating (143 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

SOLUTION Okay using the updated information from the question ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Introduction Mechanical Engineering Questions!