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Determine the probability that the present worth

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Given the following estimates of cash flows. Determine the probability that the present worth will be positive, and hence it is desirable to take the project at an interest rate of 15% (i.e., should we accept it?). Determine the probability that the net present worth will be less that -$2000. End of year Mean cash flow Probability distribution (2) 1 -20000 Normal (Std. deviation=0) 2 8000 Normal (Std. deviation = 1500) 8000 Normal (std. deviation = 2000) 4 8000 uniform (between 6500 and 9500) 5 9000 Uniform (between 7000 and 11000)

Reference no: EM133275306

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