Consider the probability distribution of the first year cash flows for the ABC Project: (a) Calculate the
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Consider the probability distribution of the first year cash flows for the ABC Project:
(a)
Calculate the range of possible cash flows (b)
Calculate the expected cash flow (c)
Calculate the standard deviation of the possible cash flows (d)
Calculate the coefficient of variation of the possible cash flowsLO3
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Possible cash flow Probability $1,000 20% $2,000 60% $3,000 20%
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