A proposed project has the following cash flow estimates: End of Year Mean Net Cash Flow Standard Deviation of Cash Flow 0 1 2 3 4 5 -$32,000 $4.000 $8.000 $12.000 $12.000 $12.000 $1.000 $2.000 $3.000 $5.000 $6.000 $7,000 Assuming independent cash flows. a normally distributed net present value, and a minimum attractive rate of return of 18%. determine an analytical solution for the following:
A proposed project has the following cash flow estimates: End of Year Mean Net Cash Flow Standard Deviation of Cash Flow 0 1 2 3 4 5 -$32,000 $4.000 $8.000 $12.000 $12.000 $12.000 $1.000 $2.000 $3.000 $5.000 $6.000 $7,000 Assuming independent cash flows. a normally distributed net present value, and a minimum attractive rate of return of 18%. determine an analytical solution for the following:
A First Course in Probability (10th Edition)
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ISBN:9780134753119
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Chapter1: Combinatorial Analysis
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
Transcribed Image Text:A proposed project has the following cash flow estimates:
End of Year Mean Net Cash Flow Standard Deviation of Cash Flow
0
1
2
3
4
5
-$32,000
$4.000
$8.000
$12.000
$12.000
$12.000
$1.000
$2.000
$3.000
$5.000
$6.000
$7,000
Assuming independent cash flows. a normally distributed net present value, and a minimum attractive rate of return of 18%.
determine an analytical solution for the following:

Transcribed Image Text:The probability that the net present value is greater than $5,000.
Probability:
I
%6
Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
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