Question: all a b c d !!!!! Problem 1: Consider the following cash flows: n Mean Standard Deviation 0 1 2 3 4 $-1.000 $100 $500
Problem 1: Consider the following cash flows: n Mean Standard Deviation 0 1 2 3 4 $-1.000 $100 $500 $700 $200 0 10 24 35 14 Assume cash flows follow normal distribution and the risk-free interest rate is 5%. A. Estimate the present worth of the cash flows. B. Estimate the standard deviation of the present worth. C. Find the probability that the cash flow at year 2 is less than $458. D. Find the probability that the present worth is less than $600
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