Determine probability that annual net cash flow will be -ve

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Reference no: EM13235550

1) a refresher on how to calculate a riskier investment, when Company A has expected returns of $50,000 and standard diviation of $40,000. Company B has expected returns of $250,000 and standard deviation of $125,000.

2) Cash flow is $100,000 and standard deviation is $40,000

a. Determine probability that annual net cash flow will be negative

b. Determine probability that annual net cash flow will be less than $20,000

Reference no: EM13235550

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