Question: need help understanding the process. thanks 12. A project has an expected net present value of $50,000 with a standard deviation of the net present

need help understanding the process. thanks 12. A project has an

need help understanding the process. thanks

12. A project has an expected net present value of $50,000 with a standard deviation of the net present value of $20,000. Assume that NPV is normally distributed. What is the probability that the project will have a negative NPV? a. 99.38% b. 0.6290 c. 34.5% d. 49.38%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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 Finance Questions!

Simulation analysis Since there are limitations to the NPV/PB approach, some managers may want to use alternative techniques to evaluate their project risk. For larger projects, some managers will...

show calculation Wolverine Corp. currently has no existing business in New Zealand but is considering establishing a subsidiary there. The following information has been gathered to assess this...

MCQ'S 11) A project has an expected net present value of $50,000 with a standard deviation of the net present value of $20,000. Assume that NPV is normally distributed. What is the probability that...

show calculation Wolverine Corp. currently has no existing business in New Zealand but is considering establishing a subsidiary there. The following information has been gathered to assess this...

International Finance Chapter 14 Case Study The case study should be typed (not hand written) and should include excel spreadsheet imbedded in the word document (appearance is worth 20% of the...

i really need help understanding this question! Exercise 13-15 Internal Rate of Return and Net Present Value [LO13-2, LO13-3) Henrie's Drapery Service is investigating the purchase of a new machine...

A proposed factory expansion project has an expected net present value of $140,000 with a standard deviation of $300,000. What is the probability that the project will have a negative net present...

A proposed factory expansion project has an expected net present value of $100,000 with a standard deviation of $280,000. What is the probability that the project will have a negative net present...

A proposed factory expansion project has an expected net present value of $90,000 with a standard deviation of $280,000. What is the probability that the project will have a negative net present...

A proposed factory expansion project has an expected net present value of $180,000 with a standard deviation of $300,000. What is the probability that the project will have a negative net present...

Find the equation of the tangent line at the indicated domain value. y = square root x; x =16

The pull strength of a wire-bonded lead for an integrated circuit is monitored. The following table provides data for 20 samples each of size three. Sample Number x1 X2 X3 15.4 15.7 15.2 15.5 16.7...

The first group of animals to first use the Terrestrial habits were mostly like in followed by in about 1 million years later

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

1. What would you do if you were Jennifer, and why?

3. This case and this chapter both had something to say about how organizational culture influences ethical behavior. What role do you think culture played at Enron? Give five specific examples of...

1. Do you think Angelo is underperforming as a result of motivation or something else, such as the need for improved training? How would you find out?