Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A proposed factory expansion project has an expected net present value of $180,000 with a standard deviation of $300,000. What is the probability that the

image text in transcribedimage text in transcribed

A proposed factory expansion project has an expected net present value of $180,000 with a standard deviation of $300,000. What is the probability that the project will have a negative net present value, assuming that net present value is normally distributed? Use Table V to answer the question. Round z value in intermediate calculation to two decimal places. Round your answer to two decimal places. % z 0.0 .1 2 .02 4920 .4522 .4129 3745 .08 .4681 4286 3897 3372 .03 .4880 4483 .4090 3707 3336 .2981 .2643 .2327 2033 .1762 .1515 .1292 .1093 .0918 .0764 .0630 .07 .4721 4325 .3936 3557 3192 .2843 .2514 .2206 .1922 .1660 .1423 .01 .4960 .4562 .4168 .3783 3409 .3050 2709 .2389 .2090 .1814 .1562 .1335 .1131 1.0951 .0793 ,0655 .0537 .0436 .0351 .0281 .0222 .0174 .0136 ,0104 .0080 ,0060 .0045 .0034 ,0025 .0018 .06 .4761 .4364 3974 3594 3228 .2877 .2546 .2236 .1949 .1685 .1446 .1230 .1038 .0869 .0721 .0594 .8 9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.05 3.10 3.25 3.50 4.00 5.00 .00 .5000 4602 .4207 .3821 3446 .3085 .2743 .2420 .2119 .1841 .1587 .1357 .1151 .0968 .0808 .0668 ,0548 .0446 .0359 .0287 .0228 .0179 .0139 .0107 .0082 .0062 .0047 .0035 .0026 .0019 .0013 .0011 .0010 .0006 .00023 .00003 .0000003 .04 .4840 4443 .4052 .3669 3300 .2946 .2611 .2296 .2005 .1736 .1492 .1271 .1075 .0901 .0749 .0618 .0505 .0409 .0329 .0262 .0207 .0162 .0125 .0096 .0073 .0055 .0041 .05 .4801 4404 .4013 3632 3264 2912 2578 2266 .1977 .1711 .1469 .1251 1056 .0885 .0735 .0606 .0495 .0401 .0322 ,0256 .0202 .0158 .0122 .0094 .0071 .0054 .0040 .0030 ,0022 .0016 .0516 3015 .2676 .2358 .2061 .1788 .1539 .1314 .1112 .0934 .0778 .0643 .0526 .0427 .0344 0274 .0217 20170 .0132 20102 .0078 .0059 .0044 .0033 .0024 .0018 .0485 .09 .4641 .4247 .3859 3483 3121 .2776 .2451 .2148 .1867 .1611 .1379 .1170 .0985 .0823 .0681 .0559 .0455 .0367 .0294 .0233 .0183 .0143 .0110 .0084 .0064 ,0048 .0036 .0026 .0019 .0014 .3520 3156 .2810 2483 .2177 .1894 .1635 .1401 .1190 .1003 .0838 .0694 .0571 .0465 .0375 .0301 .0239 .0188 .0146 .0113 .0087 .0066 .0049 ,0037 .0027 .0020 .0014 .1210 .1020 .0853 .0708 .0582 .0475 .0384 .0307 .0244 .0192 .0150 .0116 .0089 .0068 .0051 .0038 .0028 .0021 .0015 .0418 .0336 .0268 .0212 .0166 .0129 .0099 .0075 .0057 .0043 .0032 .0023 .0017 .0392 .0314 1.0250 .0197 .0154 .0119 ,0091 .0069 .0052 .0039 .0029 .0021 .0015 ,0031 .0023 .0016

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Parimutuel Applications In Finance New Markets For New Risks

Authors: Ken Baron, Jeffrey Lange

1st Edition

1403939500, 9781403939500

More Books

Students also viewed these Finance questions