The Carthage Sceptre Corporation is evaluating a possible investment in a new regional distribution warehouse. A careful

Question:

The Carthage Sceptre is evaluating a possible investment in a new regional warehouse. A careful evaluation of the anticipated net cash flows and net investment expected from the project indicates that the expected (NPV) of this project is $4.5 million. The anticipated standard deviation of this expected NPV is $3 million, and the of the project’s NPV is approximately normal. What is the chance that this project will have a positive NPV at least equal to $1,000,000?

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