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You are considering three mutually exclusive projects with the following Projected Cash Flows Probabilities Project A Project B Project C uired $100,000 $30,000 $40,000 $50,000 $150,000 $40,000 $55,000 $67,000 $200,000 $50,000 $68,000 $70,000 1.00 0.35 ows for 5 years 0.45 0.20 a and variance of NPW distribution for each project using i ows are mutually independent. Which project has a higher probability of losing calculate probabilities for each alternative. (Hint: use normal approximation = 12%. Assume %3D

You are considering three mutually exclusive projects with the following Projected Cash Flows Probabilities Project A Project B Project C uired $100,000 $30,000 $40,000 $50,000 $150,000 $40,000 $55,000 $67,000 $200,000 $50,000 $68,000 $70,000 1.00 0.35 ows for 5 years 0.45 0.20 a and variance of NPW distribution for each project using i ows are mutually independent. Which project has a higher probability of losing calculate probabilities for each alternative. (Hint: use normal approximation = 12%. Assume %3D

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question 5.8 You are considering three mutually exclusive projects with the following cash flows: Projected Cash Flows Probabilities Project A Project B Project C $200,000 $50,000 $68,000 $70,000 Investment required $100,000 $30,000 $40,000 $50,000 $150,000 $40,000 $55,000 $67,000 1.00 0.35 Annual cash flows for 5 уears 0.45 0.20 Compute the mean and variance of NPW distribution for each project using i = 12%. Assume that project cash flows are mutually independent. Which project has a higher probability of losing money? You must calculate probabilities for each alternative. (Hint: use normal approximation) A) Project A B) Project B C) Project C D) Answers A, B and C are not correct
Transcribed Image Text:Question 5.8 You are considering three mutually exclusive projects with the following cash flows: Projected Cash Flows Probabilities Project A Project B Project C $200,000 $50,000 $68,000 $70,000 Investment required $100,000 $30,000 $40,000 $50,000 $150,000 $40,000 $55,000 $67,000 1.00 0.35 Annual cash flows for 5 уears 0.45 0.20 Compute the mean and variance of NPW distribution for each project using i = 12%. Assume that project cash flows are mutually independent. Which project has a higher probability of losing money? You must calculate probabilities for each alternative. (Hint: use normal approximation) A) Project A B) Project B C) Project C D) Answers A, B and C are not correct
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