Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $100 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Probability 0.2 0.4 0.2 0.1 Site A Site A Site B Cash Flows Coefficient of Variation $50 100 110 150 0.106 Probability 0.1 0.2 0.4 0.2 0.1 a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Site B Cash Flows $ 20 50 100 150 180

Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $100 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Probability 0.2 0.4 0.2 0.1 Site A Site A Site B Cash Flows Coefficient of Variation $50 100 110 150 0.106 Probability 0.1 0.2 0.4 0.2 0.1 a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Site B Cash Flows $ 20 50 100 150 180

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 24P

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