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Problem 13-12 Coefficient of variation and investment decision [LO13-1] Kyle’s Shoe Stores Inc. is considering opening...

Problem 13-12 Coefficient of variation and investment decision [LO13-1]

Kyle’s Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $120 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values.

Site A Site B
Probability Cash Flows Probability Cash Flows
0.2 70 0.1 40
0.2 120 0.2 70
0.4 130 0.2 120
0.2 150 0.4 140
0.1 220


a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.)


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jeff jeffy answered 2 years ago
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