Probability of project having negative annual net cash flows

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Reference no: EM131337423

A new project has expected annual net cash flows of $400,000 with a standard deviation of $250,000. The distribution of annual net cash flows is approximately normal.

a. What is the probability of the project having negative annual net cash flows?

b. What is the probability that annual net cash flows will be greater than $575,000?

Reference no: EM131337423

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