Problems 6.67 and 6.68 are based on the following data. The five alternatives are being evaluated by the rate of return method. Ai*, %, when Compared with Proposal Initial Overall Proposal Investment, $ i*, % В C D E A -25,000 9.6 27.3 19.4 35.3 25.0 B -35,000 15.1 38.5 24.4 -40,000 13.4 46.5 27.3 D -60,000 25.4 26.8 -75,000 20.2

Problems 6.67 and 6.68 are based on the following data. The five alternatives are being evaluated by the rate of return method. Ai, %, when Compared with Proposal Initial Overall Proposal Investment, $ i, % В C D E A -25,000 9.6 27.3 19.4 35.3 25.0 B -35,000 15.1 38.5 24.4 -40,000 13.4 46.5 27.3 D -60,000 25.4 26.8 -75,000 20.2

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 13P: The following profit payoff table was presented in Problem 1: The probabilities for the states of...

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Possible outcomes for three Investment alternatives and their probabilities of occurrence are given next. \table, Alternative 1, Alternative 2, Alternative 3], [Failure, Outcomes, Probability Outcomes, Probability, Outcomes, Probability], [Acceptable 80, 0.20, 80, 0.40,90, 0.30], [Successful, 70, 0.20, 170,0.40, 290, 0.50]] Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round Intermeciate calculations. Round your answers to 3. decimal places, table[], \table[[Coefficient of], [Variation]], Rank], [Alternative 1... [Alternative 2,,], [Alternative 3..]]
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