Site A Site B Coefficient of Variation

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...
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Pls help me , you can use excel if you want but you have to explain the formula too, pls explain concept. Thanks 

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Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $180 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
0.2
Site A
Site A
Site B
Cash Flows
90
180
190
260
Coefficient of
Variation
Site B
Probability
0.1
0.3
0.1
0.3
0.2
Cash Flows
50
90
a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal
places.)
180
240
290
Transcribed Image Text:Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $180 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 0.2 Site A Site A Site B Cash Flows 90 180 190 260 Coefficient of Variation Site B Probability 0.1 0.3 0.1 0.3 0.2 Cash Flows 50 90 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.) 180 240 290
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