For a project the relevant data on investment and projected cash flows are presented here:

Assume that the cash flows are independently and normally distributed and the discount rate is 0.20.
Compute:

(a) the probability of the investment having a net present value of zero or less.

(b) the expected value of loss.

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Year 0 Mean Cash Flow Standard Deviation of Cash Flow Distribution (Rs) -40,000 1 30,000 2 30,000 7,000 4,000 3,000