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Chapter 11: Capital Budgeting and Risk 415 11-7 Self Test roblems Lehigh Products Company is considering the purchase of new automated equip- ment. The project
Chapter 11: Capital Budgeting and Risk 415 11-7 Self Test roblems Lehigh Products Company is considering the purchase of new automated equip- ment. The project has an expected net present value of $250,000 with a standard deviation of $100,000. What is the probability that the project will have a net present value less than $50,000, assuming that net present value is normally distributed? The lacohs Company is financed entirely with equity. The beta for Jacobs has ST1. ST
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