Lehigh Products Company is considering the purchase of new automated equipment. The project has an expected net present value of $250,000 with a standard deviation of $100,000. Question: 1. What is the probability that the project will have a net present value less than $50,000, assuming that net present value is normally distributed?

Lehigh Products Company is considering the purchase of new automated equipment. The project has an expected net present value of $250,000 with a standard deviation of $100,000. Question: 1. What is the probability that the project will have a net present value less than $50,000, assuming that net present value is normally distributed?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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