Z value in caital budgeting

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Hi all

Can anyone help me in calculating & interpreting z value. I need it urgently becaause I am facing problem in cap budgeting topic in questions like find out probability that npv is negative etc.

Thanks.

 

Replies (1)

  step 1. find  if the differerence between the  value  and the mean  divided by std  deviation is + or -.

 if it is + it falls in right tail . if it is - it falls in left tail.

  step 2then  find the value  of z from table for eg if the  value  in stp 1 say +.2389. go to .23 of  of z valu table and see under 8. 

to  step 2 add 0.5 and multiply by 100 u get %

for - subtract frm .5 valu obtnd frm step 2


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