Examlex
Instruction 6-7
A company has 125 personal computers.The probability that any one of them will require repair on a given day is 0.15.
-Referring to Instruction 6-7 and assuming that the number of computers that requires repair on a given day follows a binomial distribution,compute the probability that there will be more than 25 but less than 30 computers that require repair on a given day using a normal approximation.
Profitability Index
The present value of a project’s cash inflows divided by the investment required.
Discount Rate
The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.
Internal Rate
Often refers to the internal rate of return (IRR), which is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
Net Present Value
A financial metric used to evaluate the profitability of an investment, accounting for its time value of money.
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