=+LG 2 P12–8 Simulation Ogden Corporation has compiled the following information on a capital expenditure proposal:

(1) The projected cash inflows are normally distributed with a mean of $36,000 and a standard deviation of $9,000.

(2) The projected cash outflows are normally distributed with a mean of

$30,000 and a standard deviation of $6,000.

(3) The firm has an 11% cost of capital.

(4) The probability distributions of cash inflows and cash outflows are not expected to change over the project’s 10-year life.