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I've got my answer for the NPV. but how do i calculate the PROBABILITY that the NPV is >0? My NPV answer is 0.59. My

I've got my answer for the NPV. but how do i calculate the PROBABILITY that the NPV is >0? My NPV answer is 0.59.

My homework requires the use of Mathlab to derive codes for answers. But workings and explanation for the caluclation of probablity would be sufficient

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Task 1: 5 Marks NPV simulation A project has an initial cost of $40 and a life of 5 years. Current annual costs are $100 and will grow at 2.5%p.a. for the next 5 years. Current annual revenues are $110. Based on historical data, annual revenues are expected to grow according to the following AR model: revt = 15 + 0.9revt-1 + et, et ~ N(0, o2 = 5) You are required to simulate revenues to simulate NPVs. Assume a discount rate of 5%p.a. What is the probability that NPV

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