The Net Present Value of a Project Is Normally Distributed

question 3

Multiple Choice

The net present value of a project is normally distributed with an expected value of $52,000 and a standard deviation of $31,515. Determine the probability that the project will have a net present value of less than zero.

• A) 1.65%
• B) 95.1%
• C) 4.95%
• D) Cannot be determined

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Definitions:

Big Five Personality Traits

Five personality traits that psychologists describe as constituting the major attributes of one’s personality: extraversion, agreeableness, conscientiousness, neuroticism, and openness.

Extraversion

A personality trait describing someone as outgoing, talkative, positive, and sociable.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a desire to do a task well.

Attitude

Learned predisposition to respond to a person, object, or idea in a favorable or unfavorable way.