Question: Problem #2 Given the cash flow for two projects in the following table, determine (based on Net Present worth) which project we should take. What

 Problem #2 Given the cash flow for two projects in the

Problem #2 Given the cash flow for two projects in the following table, determine (based on Net Present worth) which project we should take. What is the probability that we will lose money (risk %) if we select Project #1 End of year Project Mean value of cash flow Prob. Distribution /Std. Deviation(2) -32000 $0 10000 Normal (Std. deviation $ 900) 9500 Normal ( " $1200) 8000 Normal ( a " a " " $1400) -36000 $0 15000 Uniform ($12000 - $18000) NN NN 12000 Uniform ($10000 -$14000) CS Scanned with Carpscanner Normal (Std. deviation = $1200)

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