Question: What should be the correct formula in Cell B8 to determine the probability of rejecting the project according to the internal rate of return (IRR),
What should be the correct formula in Cell B8 to determine the probability of rejecting the project according to the internal rate of return (IRR), assuming the cash flows from the project are normal? A 1 Scenario 2 Worst Case 3 Base Case 4 Best Case 5 Expected IRR 6 Standard Deviation 7 WACC 8 Prob(IRRWACC) B Probability 20% 60% 20% TRR 5.00% 11.00% 17.00% 11.00% 3.79% 10.00% 2 ENORM S DIST|C7-C5/C6 TRUE) -NORM S DISTIO-C5/C6 TRUE) NORM.S.DISTC7-C5/C6 FALSE) =NORMS DISTO-C5/C6,FALSE)
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