5- There is two project as follows: Probabilities The first year A B 25% 1000 500 50% 2000 1000 25% 3000 4000 is assumed the discount rate of projects is 10% a year, d of years. In addition, the initial expenditures of proje

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5- There is two project as follows:
Probabilities
25%
50%
The first year
B
500
1000
2000
1500
3000
4000
4000
5000
It is assumed the discount rate of projects is 10% a year, the revenue of projects is obtained at the
end of years. In addition, the initial expenditures of project A is 500 and B is 1000. Please:
I-
Evaluate these projects using Coefficient variation (CV) criterion. (
II-
Calculate the value of information about the events.
III-
Define the maximum amount that is economy to gather this information. (
25%
A
1000
The second year
B
1000
2000
A
0
Transcribed Image Text:5- There is two project as follows: Probabilities 25% 50% The first year B 500 1000 2000 1500 3000 4000 4000 5000 It is assumed the discount rate of projects is 10% a year, the revenue of projects is obtained at the end of years. In addition, the initial expenditures of project A is 500 and B is 1000. Please: I- Evaluate these projects using Coefficient variation (CV) criterion. ( II- Calculate the value of information about the events. III- Define the maximum amount that is economy to gather this information. ( 25% A 1000 The second year B 1000 2000 A 0
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