Chapter 11 Problem 055 A proposed project has the following

Chapter 11, Problem 055 A proposed project has the following cash flow estimates: End of Year Mean Net Cash Flow Standard Deviation of Cash Flow -$32,000 $1,000 $2,000 $4,000 $8,000 $3,000 $12,000 $5,000 $12,000 $6,000 $12,000 $7,000 Assuming independent cash flows, a normally distributed net present value, and a minimum attractive rate of return of 18%, determine an analytical solution for the following: Click here to access the TVM Factor Table Calculator EK Your answer is incorrect. Try again The mean and standard deviation of net present value 3497 Mean $U 3497 Standard Deviation Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is t5.

Solution

We will consider the possible cases where they are not equivalent. (1) Suppose p $ q is true while ¬(p 2 q) is false. For p $ q to be true, p and q have to both be true or both be false. (a) If both are true, then (p 2 q) will be false, and ¬(p 2 q) will be true, contradicting our assumption that ¬(p 2 q) is false. Thus this case is not possible. (b) If both are false, then (p 2 q) will be false, and ¬(p 2 q) will be true, again contradicting our assumption that ¬(p 2 q) is false. Thus this case is not possible. (2) Suppose p $ q is false while ¬(p 2 q) is true. Then for p $ q to be false, p and q have dierent truth values. (a) Assume p is true and q is false. Then (p2q) is true so ¬(p2q) is false, contradicting our assumption that ¬(p 2 q) is true. Thus this case is not possible