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Question: Assume that the capital cost and the present value of the cash flows generated by a project are both uncertain. If the capital cost is normally distributed with mean $3,500 and a standard deviation of $175, and the present value of the cash flows generated by the project has a mean of $4,000 and a standard deviation of $100, determine the risk of the project.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92775109

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