Question: 5. (Problems involving Normal Distribution) The table show the mean values of the cash flows associated with some investment. The investment is known and is
5. (Problems involving Normal Distribution) The table show the mean values of the cash flows associated with some investment. The investment is known and is not a random variable. The other cash flows are independent random variables with Normal distributions. In each case the standard deviation of the cash flow is one quarter of the mean value (=0.25). Compute the mean and standard deviation of the NPW of the cash flow. Accept or reject the investment based on expected value. Compute the probability that this investment yields a return greater than the MARR. The MARR is 20%
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