A Simulation Analysis for a New Acquisition Has Indicated That

question 57

Multiple Choice

A simulation analysis for a new acquisition has indicated that the expected NPV is $50 million with a standard deviation of $40 million. Assume that NPV is normally distributed. What is the probability that the project will be unacceptable?

• A) 89.44%
• B) 10.56%
• C) 39.44%
• D) 21.19%

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Definitions:

Definition By Negation

Explaining the meaning of a term by stating what it is not rather than what it is.

Class Definition

A statement that specifies the characteristics, limits, and scope of a particular class or category in academic or conceptual contexts.

Synonym Definition

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Anxiety Disorder

A mental health condition characterized by persistent and excessive worry, fear, or anxiousness that interferes with daily life.