A proposed factory expansion project has an expected net present value of $100,000 with a standard deviation

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A proposed factory expansion project has an expected net present value of $100,000 with a standard deviation of $50,000.What is the probability that the project will have a negative net present value, assuming that net present value is normally distributed?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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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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