A Project Has an Expected Net Present Value of $50,000

question 34

Multiple Choice

A project has an expected net present value of $50,000 with a standard deviation of the net present value of $20,000. Assume that NPV is normally distributed. What is the probability that the project will have a negative NPV?

• A) 99.38%
• B) 0.62%
• C) 34.5%
• D) 49.38%

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Definitions:

Trespassers

Individuals who enter or remain on property without the permission or legal right to do so.

Brain Tumor

An abnormal growth of cells within the brain or the central spinal canal.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm to another party.

Foreseeable Pain

Pain that can be anticipated or expected in given circumstances, often considered in legal contexts regarding negligence or malpractice.