A proposed project has the following cash flow estimates: Part a Part b End of Year Mean Net Cash Flow Standard Deviation of Cash Flow O Probability: 1 2 3 4 5 $-35,000 $3,800 $8.100 % $12,400 $12,400 $12.400 The probability that the net present value is positive. $750 $1,800 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: Click here to access the TVM Factor Table Calculator $2.900 $4.900 $6.100 $7,000

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 3CYU
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A proposed project has the following cash flow estimates:
Part a
End of Year Mean Net Cash Flow Standard Deviation of Cash Flow
Part b
0
~ 3
Probability:
4
5
$-35,000
Click here to access the TVM Factor Table Calculator
$3,800
$8.100
$12.400
%
$12,400
$12,400
The probability that the net present value is positive.
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:
$750
$1,800
$2.900
$4.900
$6.100
$7,000
4
Transcribed Image Text:A proposed project has the following cash flow estimates: Part a End of Year Mean Net Cash Flow Standard Deviation of Cash Flow Part b 0 ~ 3 Probability: 4 5 $-35,000 Click here to access the TVM Factor Table Calculator $3,800 $8.100 $12.400 % $12,400 $12,400 The probability that the net present value is positive. 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: $750 $1,800 $2.900 $4.900 $6.100 $7,000 4
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