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A Simulation Analysis for a New Acquisition Has Indicated That

Question 57

Multiple Choice

A simulation analysis for a new acquisition has indicated that the expected NPV is $50 million with a standard deviation of $40 million. Assume that NPV is normally distributed. What is the probability that the project will be unacceptable?


A) 89.44%
B) 10.56%
C) 39.44%
D) 21.19%

Correct Answer:

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