A new project has expected annual net cash flows of $400,000 with a standard deviation of $250,000.

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A new project has expected annual net cash flows of $400,000 with a standard deviation of $250,000. The distribution of annual net cash flows is approximately normal.
a. What is the probability of the project having negative annual net cash flows?
b. What is the probability that annual net cash flows will be greater than $575,000?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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