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The Net Present Value of a Project Is Normally Distributed

Question 3

Multiple Choice

The net present value of a project is normally distributed with an expected value of $52,000 and a standard deviation of $31,515. Determine the probability that the project will have a net present value of less than zero.


A) 1.65%
B) 95.1%
C) 4.95%
D) Cannot be determined

Correct Answer:

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