Question: A simulation model has been constructed by the Great Basin Corporation to evaluate the largest of its new investment proposals. After many iterations of the

A simulation model has been constructed by the Great Basin Corporation to evaluate the largest of its new investment proposals. After many iterations

A simulation model has been constructed by the Great Basin Corporation to evaluate the largest of its new investment proposals. After many iterations of the model, Great Basin's management has arrived at an expected net present value for Project A of $1.5 million. The standard deviation of the net present value has been estimated from the simulation model results to be $0.8 million. Use the Table V to answer the following questions. Round z value in intermediate calculation to two decimal places. Round your answers to two decimal places. a. What is the probability that the project will have a negative net present value? % b. What is the probability that the project will have a net present value greater than $2.2 million? % TABLE V Normal Distribution (Area of the Normal Distribution That Is to the Right of tz or the Left of - Standard Deviations from the Mean) Probability Probability Mean Mean +z .01 4960 .4562 .4168 3783 3409 .02 4920 4522 .4129 3745 3372 .04 .4840 .4443 4052 3669 3300 .05 4801 4404 4013 3632 3264 .08 .4681 .4286 .3897 3520 3156 .2810 .09 .4641 .4247 3859 3483 3121 .2776 3085 3050 2946 2743 3015 2676 2912 2578 .2483 2451 2709 .2389 .2090 .1814 .1562 .1335 .1131 .0951 .0793 2119 .03 4880 4483 4090 3707 3336 .2981 .2643 .2327 5033 .2033 19 .1762 .1515 .1292 .1093 .0918 .0764 .0630 .2358 .2061 .1788 .1539 .1314 .1112 .0934 .0778 2611 2611 .2296 2005 .1736 .1492 .1271 .1075 .0901 2266 .1977 .1711 .1469 .1251 .1056 0885 .0735 .0606 .0495 .0401 .0322 .0256 .0202 000 .07 .4721 4325 3936 3557 3192 .2843 2514 .2206 .1922 .1660 .1423 .1210 .1020 .0853 .0708 .0582 ,0475 ,0384 .0307 .0244 .0192 2148 .1867 .1611 .1379 .1170 0985 .0823 .0681 .0808 .0668 .06 .4761 .4364 3974 3594 3228 .2877 2546 .2236 .1949 .1685 .1446 .1230 1038 .0869 .0721 .0594 .0485 .0392 .0314 .0250 .0197 .0154 .0119 .0091 .0069 .0052 .0039 .0029 .0021 ,0015 0749 .0655 .0643 .00 0.0 .5000 .1 4602 .2 .4207 3 3821 4 3446 5 .6 .7 2 .2420 .8 9 .1841 1.0 .1587 1.1 .1357 1.2. 1151 1.3 .0968 1.4 1.5 1.6 .0548 1.7 .0446 1.8 ,0359 1.9 .0287 .0228 - 2.1 .0179 2.2 .0139 2.3 .0107 2.4 .0082 25 .0062 2.6 2.7 2.8 2.9 .0019 3.0 .0013 3.05 .0011 3.10 .0010 3.25 .0006 3.50 4.00 .00003 5.00 .0000003 Absolute values of z 0526 ,0516 .0559 .0455 .0537 .0436 .0351 .0281 .0222 .0174 0174 .0136 .0104 .0080 .0060 .0427 0344 0274 .0217 0170 0132 0102 .0158 .2177 .1894 .1635 .1401 .1190 .1003 .0838 .0694 .0571 .0465 .0375 .0301 .0239 .0188 .0146 0113 .0087 ,0066 ,0049 .0037 .0027 .0020 .0014 .0418 .0336 .0268 .0212 .0166 .0129 .0099 .0075 0057 .0043 .0032 .0023 .0017 .0150 .0618 0505 .0409 0329 .0262 .0207 .0162 203 .0125 ,0096 .0073 .0055 .0041 .0031 .0023 .0016 0078 .0367 .0294 .0233 .0183 .0143 .0110 .0084 .0064 .0048 .0036 .0026 .0019 .0014 .0122 .0094 ,0071 ,0054 .0040 .0030 .0022 .0016 .0116 ,0089 ,0068 ,0051 .0038 ,0028 .0021 .0015 .0045 .0059 .0044 0033 .0024 .0018 .0047 .0035 .0034 .0026 .0025 .0018 .00023

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