Question

A new project has expected annual net cash flows of $420,000 with a standard deviation of $450,000. The distribution of annual net cash flows is approximately normal. Use Table V to answer the questions. Round your answers to two decimal places.

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

    %

  2. What is the probability that annual net cash flows will be greater than $570,000?

    %

TABLE V Normal Distribution (Area of the Normal Distribution That is to the Right of +z or the Left of -z Standard Deviations

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Are Given Neet cash flow (mean). $420,000 Standard deviation = $uso, uro - con scare / z = =-0.93 We need probability af havifor calculating the probability of negative cash flow, we have to find probability for 0, using z score, rest explained in image.

Add a comment
Know the answer?
Add Answer to:
A new project has expected annual net cash flows of $420,000 with a standard deviation of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A proposed factory expansion project has an expected net present value of $90,000 with a standard...

    A proposed factory expansion project has an expected net present value of $90,000 with a standard deviation of $280,000. What is the probability that the project will have a negative net present value, assuming that net present value is normally distributed? Use Table V to answer the question. Round z value in intermediate calculation to two decimal places. Round your answer to two decimal places. % TABLE V Normal Distribution (Area of the Normal Distribution That is to the Right...

  • The return on the Tarheel Corporation stock is expected to be 14 percent with a standard...

    The return on the Tarheel Corporation stock is expected to be 14 percent with a standard deviation of 10 percent. The beta of Tarheel is 0.7. The risk-free rate is 9 percent, and the expected return on the market portfolio is 16 percent. What is the probability that an investor in Tarheel will earn a rate of return less than the required rate of return? Assume that returns are normally distributed. Use Table V to answer the question. Round z...

  • Completed pregnancies are normally distributed with a mean of 266 days and a standard deviation of...

    Completed pregnancies are normally distributed with a mean of 266 days and a standard deviation of 16 days. Use table b7 to determine probablity of that a completed pregnacy lasts at least I) 270 days Ii) 310 days Table B-7 The Normal Distribution z 00 01 02 03 04 05D6 07 08 09 0.0 5000 4960 4920 4880 4840 4801 4761 4721 4681 4841 0.1 4802 4562 4522 4483 4443 4404 4364 4325 4286 4247 0.2 4207 4168 4129 4090...

  • Find the area of the shaded region. The graph depicts the standard normal distribution with mean...

    Find the area of the shaded region. The graph depicts the standard normal distribution with mean 0 and standard deviation 1 Click to view.page 1 of the table. Click to view.page 2 of the table The area of the shaded region is (Round to four decimal places as needed) Standard Normal Distribution Area 0 Z N .01 3.4 - 3.3 -3.2 3.1 3.0 2.9 2.8 - 2.7 .09 .0002 .0003 .0005 .0007 .0010 .0014 .0019 .0026 .08 ,0003 .0004 .0005...

  • A new project has expected annual net cash flows of $160,000 with a standard deviation of...

    A new project has expected annual net cash flows of $160,000 with a standard deviation of $480,000. The distribution of annual net cash flows is approximately normal. Use Table V to answer the questions. Round your answers to two decimal places. What is the probability of the project having negative annual net cash flows? % What is the probability that annual net cash flows will be greater than $310,000? %

  • Find the area of the shaded region. The graph depicts the standard normal distribution with mean...

    Find the area of the shaded region. The graph depicts the standard normal distribution with mean 0 and standard deviation 1 Click to view.page 1 of the table. Click to view.rage 2 of the table. 2036 The area of the shaded region is (Round to four decimal places as needed.) edge - Google Chrome -nt/Player Test.aspx?testid=215354477&centerwin-yes mer 2020 jevon rutledge & 3: Chapters 5, 6, & 7 Time Remaining 21 of 32 (7 complete) Th 0 Standard Normal Distribution Table...

  • So, converted to a z interval, we wish to find P(0.26 < z < 0.79). Recall...

    So, converted to a z interval, we wish to find P(0.26 < z < 0.79). Recall that since the z value is between two different values, we will need to subtract the table areas for Z, = 0.26 from the table area for z, = 0.79. Use this table to determine P(Z < 0.26) and P(Z < 0.79). Substitute these values into the formula to find the probability. (Round your answer to three decimal places.) P(0.26 < z < 0.79)...

  • A survey found that women's heights are normally distributed with mean 63.6 in and standard deviation...

    A survey found that women's heights are normally distributed with mean 63.6 in and standard deviation 2.5 in. A branch of the military requires women's heights to be between 58 in and 80 in. a. Find the percentage of women meeting the height requirement. Are many women being denied the opportunity to join this branch of the military because they are too short or too tall? b. If this branch of the military changes the height requirements so that all...

  • 52. Use the following table, Areas in the Tail of the Normal Distribution, to answer the...

    52. Use the following table, Areas in the Tail of the Normal Distribution, to answer the q 0 5000 4960 4920 4880 4840 4801 4761 47214841 1 4602 4562 4522 44834443 4404 4364 4325 4 42 2 |4207 4168 4129 4090 4052 4013 3974: 39% 3esr 3 3821 37833745 3707 36693632 3594 3557 3520 5 3085 3050 3015 2581 2545 212 2877 2843281 6 2743 2709 2676 2643 2611 2578 25462514 7 2420 2389 2358 2327 22962256 2236 3446 3409...

  • The mean cost of domestic airfares in the United States rose to the airlines plus any...

    The mean cost of domestic airfares in the United States rose to the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standa a. What is the probability that a domestic pirfare is $560 or more (to 4 declmals)? an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charped by deviation or $100. Use Table i in Appendix B. b. What is the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT