A Project Has an Expected NPV of $50,000 with a Standard

question 6

Multiple Choice

A project has an expected NPV of $50,000 with a standard deviation of the NPV of $20,000. Assume that NPV is normally distributed. What is the probability that the project will have a net present value greater than $60,000?

• A) 1915%
• B) 69.15%
• C) 0.13%
• D) 30.85%

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Definitions:

History-graded Influence

Refers to events or trends that affect entire cohorts or generations, such as wars or economic crises, shaping their attitudes and behaviors.

Hurricane Sandy

A powerful tropical cyclone that affected the Caribbean and East Coast of the United States in October 2012, causing significant damage and loss of life.

Development

The process of growth or progression through a series of changes, often used in context with physical, intellectual, or emotional growth.

Cohort

A generation of people born at the same time, influenced by the same historical and cultural conditions.