Question: A project under consideration has a 10-year projected life. The initial investment for the project is estimated to have a mean of $10,000 and a
A project under consideration has a 10-year projected life. The initial investment for the project is estimated to have a mean of $10,000 and a standard deviation of $1,000. The annual receipts are independent, with each years expected return having a mean of $1,800 and a standard deviation of $200. MARR is 12 percent.
Determine the probability that the present worth is negative.
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