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Hayward Gunstocks is considering the purchase of new equipment. The expected NPV is $150,000 with a std. deviation of $80,000. What is the approximate probability

Hayward Gunstocks is considering the purchase of new equipment. The expected NPV is $150,000 with a std. deviation of $80,000. What is the approximate probability that the project will have a negative return assuming a normal distribution? (Note: we covered this under Z-scores)

a.

0.30%

b.

3.04%

c.

1.88%

d.

15.87%

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