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A Project Has an Expected Net Present Value of $50,000

Question 34

Multiple Choice

A project has an expected net present value of $50,000 with a standard deviation of the net present value of $20,000. Assume that NPV is normally distributed. What is the probability that the project will have a negative NPV?


A) 99.38%
B) 0.62%
C) 34.5%
D) 49.38%

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