You have estimated the expected NPV from a project to be $3,000,000 with a standard deviation of

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You have estimated the expected NPV from a project to be $3,000,000 with a standard deviation of $4,000,000. The distribution of the possible NPVs is approximately normal. If you are willing to accept a 25 percent chance of incurring a negative NPV on the project, should it be undertaken?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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